When you receive a personal injury settlement, not all of it may be yours to keep right away. Health insurers, government programs, and medical providers that paid for or provided your care may have a right to be repaid from the recovery. These claims are called liens or reimbursement claims.
Common Sources of Liens
- Private health insurance plans, including employer plans
- Medi-Cal
- Medicare
- Hospitals that treated you, under California’s Hospital Lien Act
- Doctors or clinics that treated you on a lien basis, agreeing to wait for payment until the case resolves
- Workers’ compensation carriers, when the injury happened on the job
Why Liens Matter
Liens are paid from the settlement before the remaining funds go to you. If they are not identified early, they can delay distribution or reduce your net recovery unexpectedly. Ignoring a valid lien, especially a Medicare or Medi-Cal lien, can create serious problems later.
Liens Can Often Be Reduced
A lien is not always the final word. Depending on the type of plan and the law that applies, reductions may be available because:
- Part of the settlement represents attorney fees and costs the lienholder did not pay
- The amount claimed includes charges unrelated to the accident
- Some plans and programs have rules that limit how much they can recover
- Hospitals in California face statutory limits on how much they can take from a recovery
Self-funded employer health plans are often governed by federal law and can have stronger reimbursement rights. Reviewing the actual plan documents is important.
How We Handle It
At The JVB Law Firm, we identify liens early, verify that the charges are related to your injury, and negotiate reductions where the law allows. The goal is simple: maximize what you actually take home. Call for a free consultation.
This article is general information, not legal advice. Reading it does not create an attorney-client relationship. Every case is different; speak with a lawyer about your situation.