What Is a Medical Lien in an Arizona Personal Injury Case?

If you receive medical care after an accident in Arizona and can’t pay your bills, your healthcare providers or insurance company might file a medical lien against you. This claim lets your providers or insurer take some of the money you receive from a personal injury claim to pay your debts.

While a medical lien can significantly reduce your compensation in an Arizona personal injury lawsuit, healthcare providers and insurers must follow specific rules for a lien to be valid. There are also limits on how much of your compensation from a personal injury claim a provider or insurer can recover through a medical lien.

An Arizona personal injury attorney can answer your questions about medical liens and make sure your doctors and insurance company respect your rights.

What Is a Medical Lien?

A lien is a legal term for a claim someone makes against your estate to make sure they get paid for a debt you owe. You may have heard of banks placing a lien on someone’s home if the homeowner falls behind on their mortgage. The same principle applies to medical liens.

In Arizona personal injury cases, a medical lien is a claim by a hospital, doctor, or health insurance company to get reimbursed for treatment they gave you after an accident. The lien stays on your estate until you resolve it, either by paying it back or reaching an agreement with whoever filed the lien. If you win a settlement or trial award after an accident, whoever filed a lien against you may have a claim to some of that money before you receive the rest of your compensation.

What Is Subrogation?

Subrogation happens when your health insurance company pays for your medical bills after an accident and then tries to get that money back from your settlement.

Here’s how it works in basic terms. Suppose you get hurt in a car accident. Your insurance company will pay the hospital according to the terms of your policy. The insurance company then files a lien to recover what they paid the hospital. Because the insurance company filed a medical lien, they have the right to a portion of your settlement. In fact, the lien means they must be paid before you can receive your compensation.

Will a Medical Lien Be Deducted from My Final Settlement?

A valid medical lien entitles a doctor, hospital, or insurance company to a portion of your settlement. However, the key word there is “valid.” Arizona law includes strict rules for medical liens. Healthcare providers, medical facilities, or insurers who don’t follow the law don’t have an enforceable claim against you.

One issue that can arise with a medical lien is if a doctor or facility files a medical lien separate from an insurance company’s claim. Under Arizona law, healthcare providers can only file separate medical liens if their contract with an insurance company contains provisions expressly allowing the provider to file their own lien. So, if a doctor in your insurance network treated you and filed a separate medical lien, it might not be valid, depending on the terms of their contract with your insurer.

Healthcare providers and insurance companies must also follow specific rules when filing a medical lien. If they don’t follow the correct legal procedure, the lien might not be enforceable.

Are Medical Liens on My Arizona Personal Injury Settlement Negotiable?

You can usually negotiate with a healthcare provider or insurance company to reduce the amount you owe in a medical lien. You’ll need a lawyer’s help, as medical liens contain complex terms and provisions. Furthermore, doctors and insurance companies often care more about getting paid than your rights or interests, so you might face pressure to pay more than a lienholder is allowed.

One strategy in medical lien negotiations is to dispute the accuracy of your medical expenses. Doctors and healthcare facilities sometimes double charge for services (accidentally or otherwise), and a careful review of your bills might reveal these or other accounting errors.

Similarly, you can question whether the treatments you received were necessary. Healthcare facilities and insurance companies sometimes charge for unnecessary or unjustified treatments, inflating your medical expenses. You might reduce the amount you owe by finding medical experts who can show some of your charges stem from unnecessary treatments.

You can also argue that your pain and suffering means you shouldn’t have to bear the additional stress of a medical lien. The effectiveness of this approach depends on your injuries, how they affect your life, and your legal team’s skill.

Finally, you can try to reduce a lien by showing how someone else caused your injuries, meaning you shouldn’t be financially responsible for your medical bills. For example, if you sustained injuries in a car accident you didn’t cause, you can argue that the other driver (or whoever caused the crash) should pay your medical bills.

Is There a Statute of Limitations for Filing a Medical Lien in Arizona?

Doctors and hospitals in Arizona must file medical liens within specific timeframes. Arizona law states individual providers have 30 days from the day you received treatment to file a lien. Hospitals must file liens within 30 days of your discharge date. An Arizona personal injury attorney can see if your doctor or hospital filed a medical lien on time and, if not, seek to have the lien dismissed.

Can the Resolution of a Medical Lien Delay Me from Receiving My Total Settlement?

You must resolve any liens against you before receiving the rest of your settlement. Lien negotiations can take months or years if you don’t have legal help, but an experienced attorney can represent you in these negotiations and help you contest excessive charges.

Contact an Arizona Personal Injury Lawyer

A medical lien can significantly reduce your personal injury settlement when you’re already experiencing financial stress. Our Arizona personal injury lawyers have over 50 years of combined experience and can provide the individual, dedicated attention you need to reduce your lien amount. Call Mushkatel, Gobbato & Kile, P.L.L.C. now or complete our contact form for a consultation.