Lien Against Insurance Proceeds

Wait, I thought that was mine. . .

Did you know that a hospital or health care provider can file a lien against the proceeds of any settlement or judgment you may get against the person who ran the red light and hit you. Even though your insurance paid the bill, the medical provider may claim a balanced bill lien. That is, the hospital that saw you in the emergency department has the right by statute to record a lien against your settlement or judgment. Although the provider may not sue you directly under the terms of your insurance or under the statute for the difference between what the insurance paid and what the hospital billed, it can still get that difference from the third-party tortfeasor (bad guy who hit you).

What this could mean to you is no money would be available to pay you for your pain and suffering if the person has a very minimal policy. You get hurt, you pay for insurance, and the health industry gets to keep it. It is basically a windfall to them as had there not been someone else responsible, they would only be entitled to what your insurance paid.

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