Medicare has a federally statutorily mandated lien against any recovery on a personal injury case wherein Medicare has paid any related medical bills. The injured party and the injured party's attorney are liable to pay this lien when a settlement or jury verdict is reached. Failure to honor the statutory lien can result in serious consequences, including suit against you and/or your attorney for the lien amount,interest and related costs.
You mentioned that you have been declared disabled. That raises other significant issues. Any recovery on a personal injury claim, which may be of any substantial amount, may need to be protected through a mechanism such as a "Special Needs Trust". You should consult your attorney about the special circumstances that arise when you are on Medicare and also are disabled and receiving monthly payments.
Legal Disclaimer:
Mr. Lundeen is licensed to practice law in Florida and Vermont. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen advises the questioner to confer with an attorney in their state in order to ensure that proper advice is received.
Generally, Medicare will put a lien on any personal injury case where they paid for medical treatment related to the underlying injury involved in the claim or lawsuit. The lien only applies if a settlement or a jury verdict occurs -- if there is no recovery, then normally, nothing has to be paid back on this lien. Medicare will usually send you a letter saying they are putting a lien on the case and subrogating their interest in the matter. Per the laws, even if they don't send you something in writing, you are on notice that a lien exists.
Medicare will almost always place a lien on a personal injury matter where they have paid the injured parties medical bills. If you receive compensation from the party that caused your injury you will be required to reimburse Medicare due to the lien. You may be able to negotiate the amount you must pay back to Medicare as a result of the lien.
Legal Disclaimer: The response herein is not legal advice and does not create an attorney/client relationship. Mr. Whiteru advises the questioner to contact an attorney in his or her state and obtain more detailed counseling regarding their legal issue.
