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My mother received a 12k settlement her attorney is holding the funds. medicare says she owes $800 cant he distribute funds -800

Long Island City, NY |

*Her settlement amount was for 12k
*Medicare says she owes $800 for doctors visits that are totally unrelated with this lawsuit or injuries.
*She asked her attorney to release the funds in escrow minus the 800 or whatever amount he though would be enough to hold till this dispute with medicare was over.
*He told her he could not release the funds she either had to pay the medicare bill in full or wait till they respond.

Attorney Answers 4


  1. Perhaps there is a misunderstanding or miscommunication. As a general rule, settlement proceeds less (potential) liens may be disbursed. Your question suggests that the MSPRC number was conditional. Good luck.

    Personal injury cases only; I'm good at it; you be the Judge! All information provided is for informational and educational purposes only. No attorney client relationship has been formed or should be inferred. Please speak with a local and qualified attorney. I truly wish you and those close to you all the best. Jeff www.nyelderinjurylaw.com


  2. Most lawyers will escrow an amount that will be more than sufficient to pay the lien and distribute the balance. The lawyer can send Medicare a letter explaining why the treatment is unrelated and Medicare usually drops the claim pretty quickly. Perhaps the lawyer is worried about additional charges popping up.

    I am a former federal and State prosecutor and have been doing criminal defense work for over 16 years. I was named to the Super Lawyers list as one of the top attorneys in New York for 2012 and 2013. No more than 5 percent of the lawyers in the state are selected by Super Lawyers. Martindale-Hubbell has given me its highest rating - AV Preeminent - in the areas of Criminal Law, Personal Injury, and Litigation. According to Martindale-Hubbell”AV Preeminent is a significant rating accomplishment - a testament to the fact that a lawyer's peers rank him or her at the highest level of professional excellence." Fewer than 8% of attorneys achieve an AV Preeminent rating. I also have the highest ranking – “superb” – on Avvo. The above answer, and any follow up comments or emails is for informational purposes only and not meant as legal advice.


  3. He should be able to distribute the funds, minus the amount medicare claims is the lien, and then work out a settlement of that amount as well. This is what usually happens.


  4. Sounds like the lawyer is trying to negotiate down the lien, which would be beneficial to you.