There is no argument that car accidents are incredibly inconvenient for everyone involved. When there are injuries involved, however, the disruption caused by the accident is increased exponentially. For accident victims who have health insurance, the ability to secure necessary care is not significantly impacted and the insurer will work behind the scenes to recoup the funds they are owed for the care from the person who caused the accident.
However, for victims who lack health insurance – either private or through Medicare or Medi-Cal – or who do not have no-fault insurance, who cannot afford deductibles, or cannot afford to wait until the case is settled, the ability to access the necessary health care is compromised. There is an option, however, that allows these victims to get the care they need: a medical lien.
Essentially, a medical lien is a contract between the health care provider and the accident victim whereby the provider agrees to treat the victim and wait for payment until the claim is resolved.
Medical liens are serious contracts that are binding, however, as providers want assurances that they will be able to recover their costs at the end of the litigation. The best way to find a provider who will enter into a medical lien is through a qualified, connected, and veteran Los Angeles car accident attorney. The attorney can give the provider assurances as to the strength of your case and the chances of recouping their money when the case is settled.
Of course, the provider does not have to enter into the lien, so it is all the more critical to find a skilled and experienced car accident attorney who knows of multiple providers who would be amenable to a medical lien.
Your attorney should help you review and understand the medical lien as well as your rights and obligations as it is a binding contract. The attorney can also help you negotiate certain provisions when necessary and work with the insurance company to craft a lien that is fair to both parties. Once the parties agree on the terms, the medical lien is signed and the provider notifies the insurance companies of the lien – in a practice known as perfecting the lien. The lien is now in effect and the provider is contractually obligated to provide you with the services that you have agreed upon.
Ideally, you win your case and are awarded a settlement that is sufficient to pay your provider and compensate you for your injuries and damages. But what happens if you lose or if you are not awarded enough to pay back the provider? The contract could dictate that you are on the hook for those expenses. And, if you are, like any other debt the medical provider will have access to all available remedies under California law including filing suit to recover the money. While the law typically requires the provider to sue for the balance within four years, many medical liens stipulate that the money the provider fronts to the victim is held in trust by the victim and thus is not subject to any statute of limitations. This means that the victim could be sued at any time, even after four years.
There is good news, however, which is that a skilled and experienced Los Angeles car accident attorney can help negotiate a reduction in the overall amount owed and/or a payment plan to allow you to pay the money back over time. Remember that most doctors and hospitals are not particularly excited about taking you to court or to arbitration and so should be amenable to negotiations of this type. They are most interested in recouping something rather than nothing.
Remember also that you cannot necessarily count on large medical bills translating into a larger settlement. A typical settlement offer or award will use the value of the doctor’s services – which is often based on the lowest rate an insurer will pay – rather than what the patient pays under the medical lien.
If you are insured through Medi-Cal, the system creates a medical lien on its own without negotiating with the provider through the Department of Health Care Services Personal Injury Program. Medi-Cal is allowed to insert itself into your suit against the other driver, bring its own claim against the other driver, and pursue its lien against your settlement. Given these broad powers awarded to DHCS it is imperative to have a competent and experienced Los Angeles car accident lawyer assist you with your case to help protect your settlement and ensure that you are still left with a good amount of the money.
Medical liens serve an important purpose for individuals who are injured through no fault of their own in a car accident but who are not able to afford their medical care or who do not have medical insurance. However, they are designed only to be used in these situations. If the victim has private health insurance, they will almost always come out ahead by going through their own insurer since the pre-negotiated fees charged by providers under their plan will almost certainly be lower than what would be charged if there were a medical lien. Also, a medical lien is a binding contract and represents a significant obligation on the victim if they lose their case or are awarded an insufficient amount to cover all of their expenses and damages.
Being injured in a car accident is already a burden and is even more burdensome when you do not have health insurance, cannot afford co-pays and deductibles, or are unable to afford to wait for medical care until the case settles. In these cases, a medical lien is a vital lifeline that allows you to obtain necessary medical care without immediately incurring the cost of that care. However, medical liens are not to be entered into lightly and it is vital to have a qualified and experienced Los Angeles car accident attorney help you negotiate through the process.
