What Are Medical Liens and Why Do I Have To Pay Them in a Personal Injury Settlement?

Legally, we’re required to let certain health insurances know that there is the potential for a settlement.

State agencies, federal agencies, we’re legally required to let them know.

Private health insurances, we are not necessarily legally obligated to let them know. But, the most important thing is to realize that the lien potential is there, and it’s important for our clients to understand this. But, we also use those liens as a negotiation tool because the settlement is for repayment of the medical bills. So, in effect, it is repayment of that lien.

So, the lien is a negotiating tool as well as something that we are legally required to do.