If you’ve been involved in a motor vehicle crash resulting in medical treatment, you may discover that you have a “medical lien” filed on your case. A medical lien is a claim made by a hospital or other medical provider asserting a legal right to a portion of your settlement/judgment for the value of the medical care provided. In other words, the hospital can place a hold on your medical bills and require that it be paid from your settlement. In Missouri, a hospital or medical provider is permitted to assert a lien in certain circumstances pursuant to Missouri law. See R.S.Mo. § 430.230.
Following a motor vehicle crash, medical bills can accumulate quickly, resulting in large medical liens asserted against your case. Oftentimes, hospitals will attempt to assert a lien on your case rather than submitting your bills to health insurance. This is usually done by the hospital in an attempt to be paid a higher amount on your bills than the hospital would otherwise receive from health insurance. Other times, a medical lien can allow you to receive treatment when you do not carry health insurance yourself. Regardless of your particular situation, it’s important that your attorney understands what these liens are, how to negotiate these liens, and how to determine if the lien has been asserted correctly and whether it is therefore legally enforceable.
To assert a valid lien, a medical provider must provide proper notice sent by certified mail to the parties. Further, the provider must include in the notice the name and address of the injured person, the date of the accident, the name and location of the hospital and the name of the liable party. It’s important to note, a medical lien usually does not attach to a first party claim such as an uninsured motorist or underinsured motorist claim in Missouri. Rather, a medical lien can typically only attach to a third-party liability claim.
Finally, under Missouri’s medical lien statute, the total amount of all liens asserted on your case cannot exceed 50% of your total recovery after payment of attorney’s fees and expenses. This means that if a medical provider chooses to assert a lien on your case, they will be required to accept a reduction in their claimed lien if it exceeds 50% of your net recovery. For example, if you resolve your case for $50,000, but you have $100,000 in medical liens, the medical providers may have to accept just $16,666 as payment for your medical liens (assuming 33.33% attorney fees).
If you or a loved one has been injured in a motor vehicle crash, please reach out to The A.W. Smith Law Firm for a free, no-obligation case evaluation. Our attorneys are experienced in assessing, fighting, and negotiating medical liens, resulting in a higher recovery for our clients.
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