How Personal Injury Attorneys Can Resolve a Medical Lien on Settlement

March 18, 2024

Video Transcript:

What is a medical lien? And what should you do with a lien on your personal injury settlement? Hi, I’m speaking on behalf of Hensley Legal Group, a personal injury law firm based out of Indiana. I’d like to explain how personal injury attorneys can resolve a medical lien on a settlement. What Is a Medical Lien? A medical lien is a legally binding agreement between a patient and a hospital. Just as a personal injury settlement can compensate you for your losses, hospitals can be compensated for your treatment out of your settlement if they have a medical lien. How the Medical Lien Process Works A medical lien is not valid until it has been “perfected.” To perfect a medical lien in Indiana, a hospital needs to file a verified statement in writing with the office of the recorder of the county within 90 days after your discharge and send copies to your attorney, every allegedly liable party, and the Department of Insurance. A perfected medical lien must be resolved before your settlement funds can be distributed. To officially release the lien, the lienholder needs to file an executed certificate with the office of the recorder of the county and mail a copy to the Department of Insurance. Once the medical lien is released, you can be paid after every other lien is satisfied and your attorney has been compensated. Can a Medical Lien Be Reduced? To put more money in your pocket, your lawyer can negotiate a reduction in your medical liens. Your attorney could dispute overages, bills that already been paid, and unreasonable or excessive charges in order to secure a reduction. If your damages exceed the defendants’ insurance coverage and assets, your medical liens could be reduced so that you receive at least twenty percent of the settlement.