What is a Medical Lien in an Auto Accident Case?

Medical liens are often created by health providers who treat patients in auto accident cases.  The hospital creates the lien when they have not been compensated for the treatment given.  In many cases medical providers agree to work on a lien as long the patient’s injury attorney promises to pay the medical provider out of the injury settlement. Generally, when you get into a car accident, the driver who caused the accident is also  responsible for the accident victim’s medical bills. Unfortunately, sometimes the responsible person has no insurance and cannot afford to pay for the medical bills. In this situation, you obviously still need to get medical treatment.  If you have health insurance then they will be paying the bill for the treatment.

If your health insurer or auto insurance provider pays out money for your car accident injuries and you later recover money that is intended for your medical bills , the insurance company will seek reimbursement.  In the insurance company’s eyes, it wouldn’t be fair to allow you to keep that money that the health insurance company paid out. Thus, a medical lien is placed against the case and the lien ensures that the health insurance company will be paid back out of the proceeds of a jury verdict or a settlement.

It is important to know that an experienced personal injury lawyer can often negotiate with the health insurance provider to reduce the bill amount.  This way you  end up keeping more of your payout from the insurance settlement. This will vary on a case by case basis since medical providers have various polices.

If you receive notice of a medical lien you should contact a Georgia accident lawyer first to find out how best to proceed to maximize your injury settlement. An experienced Georgia injury attorney can help you to deal with the insurance company and maximize the amount of your settlement for your injury case.