How do medical liens work?

Earlier this year, I was involved in an auto accident for which I was not my fault. I suffered from back pain, which also led to some testicle pain. I received a call from the insurance company to confirm my settlement amount. However, she found a lien on my account. How does this work? Originally I was offered $5000 for pain and suffering. I’m not certain if it is the hospital or my insurance Medicaid, that filed the lien on my claim. Will they pay everyone else off or do they give me the award? Am I responsible for paying back my insurer, etc.?

Asked on September 8, 2016 under Personal Injury, Colorado

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You are responsible for paying the lien(s) out of the settlement.   Therefore, the settlement amount has to be sufficient to compensate you and pay the lien(s).
Medicaid is entitled to reimbursement, but the amount is negotiable.
Other liens may be negotiable.
If a doctor or another party has a lien, it means the party is paid out of the settlement for the medical treatment that was provided.
Health insurance companies usually require reimbursement.
 
 


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