What Are Medical Liens In Personal Injury Cases?

In Oklahoma, hospitals must treat injured patients in an emergency. They cannot turn you away, even if you don’t have insurance. However, if you win a personal injury case afterward, the hospital can place a lien against your settlement to get paid back for your care. This is called a medical lien.

You can also negotiate a medical lien ahead of time with healthcare providers such as doctors, physical therapists, or medical labs, which can help you get the ongoing care you need after an accident. All of these are considered medical liens in personal injury cases, and we’ll go over everything you need to know here.

What Are Medical Liens in Personal Injury Cases?

A medical lien is a legal claim that allows a healthcare provider to get paid directly from your personal injury settlement. This usually happens when you need treatment after an accident, but you don’t have insurance. The provider agrees to treat you, knowing they will be paid from your future settlement if you win the case.

For example, if you’re injured in a car accident and need surgery, but don’t have health insurance, the hospital might agree to treat you and place a lien on your personal injury claim. That way, they know they will get paid once your case is settled.

If you don’t have insurance and weren’t injured due to someone else’s negligence, you will be responsible for paying your medical bills out of pocket. If you can’t pay, the provider may take legal action to collect, which could include getting a judgment against you or even garnishing your wages until the debt is paid.

What Are the Different Types of Medical Liens?

There are several types of medical liens in personal injury cases. Let’s take a closer look at some of the most common.

Provider Liens

Hospitals and doctors might agree to defer payments for your treatment while you work on resolving your personal injury case. In these situations, they usually require you to sign a letter of protection (LOP). An LOP is an agreement stating that the provider will get paid from your future settlement. Even without an LOP, providers can still file a lien against your settlement to recover their costs for treating you. This guarantees they get paid once your case is resolved.

Insurance Liens

If you used your health insurance to cover the cost of your medical treatment, your insurance company may place a lien on your settlement. This process, known as subrogation, allows the insurance company to get reimbursed for what they spent on your treatment. Essentially, if you receive a settlement for your injuries, your insurance wants to be repaid for the amount they covered on your behalf.

Medicaid and Medicare Liens in Personal Injury Cases

Medicare and Medicaid liens in personal injury cases are also common. These programs can place liens on your personal injury settlement if they paid for part of your treatment, and you’re required by federal law to reimburse them if you receive compensation. In Oklahoma, your attorney may be able to negotiate to reduce the lien amount. This negotiation should happen before settling your claim, so you can keep as much of your compensation as possible.

Workers’ Compensation Liens

If your medical bills were covered by workers’ compensation because you were injured on the job, workers’ comp may also place a lien on your settlement. Workers’ compensation is a form of insurance. Like medical providers and other insurance companies, they will want to recover their costs if you receive additional compensation for the injury from a third party.

How Do Medical Liens Work?

Medical liens in personal injury cases can work in several ways, depending on if you negotiate the lien ahead of time or if it’s filed after the company learns you have a claim or settlement. Liens from insurance companies, including Medicare, Medicaid, and workers’ compensation, are often automatically filed by the organization when they learn about your case. Hospitals, doctors, and other medical providers can also file liens if they have unpaid bills related to your injury.

You can also use medical liens to make sure you get the ongoing treatment you need. For example, if you need multiple surgeries or long-term physical therapy to get the best health outcome, you can negotiate a medical lien with some providers. To do this, simply ask if they’ll provide treatment on a lien basis. If they agree, you’ll sign an LOP, and the provider will file a lien on your personal injury claim. When your case settles, all organizations with liens will be paid first, plus your attorney, and then you’ll get the rest of the money.

It’s also important to know what happens if you don’t win your case. If you lose, you are still responsible for paying your medical bills out of pocket. This is why it’s crucial to have a strong case before agreeing to a lien.

Should You Get Treatment on a Lien Basis?

In an emergency situation, hospitals and doctors are required to treat you. You do not need to sign a letter of protection (LOP) to receive this emergency treatment. However, if you don’t have insurance, you may either have to pay out of pocket or your provider may decide to file a medical lien against your personal injury case.

If you need ongoing treatment after the emergency, medical liens in personal injury cases can be helpful. They allow you to continue getting treatment without paying upfront, which can make a big difference if you need ongoing care.

Before agreeing to a medical lien or an LOP, it’s important to talk to an attorney to make sure you have a strong case. Medical providers are also more likely to agree to a lien if you’ve already filed a personal injury case, as this shows that there may be a settlement to cover their costs. Remember, if your case isn’t strong, you might end up having to pay out of pocket, which could be a major financial burden.

Talk to an Attorney About Medical Liens

If you’re injured and have received emergency medical care, it’s important to speak to a personal injury attorney as soon as possible. They can advise you on the best steps to take, whether that means negotiating a medical lien, assessing the strength of your case, or helping you move forward with a personal injury claim. Contact The Oklahoma Injury Guy today, and we’ll guide you through the process and help you understand what medical liens mean for your financial future, so you can focus on your recovery.