My settlement check is sitting in my attorney trust account while he tries to get my medical bills reduced.
If the automobile liability insurer is notified of a medical lien, your attorney must satisfy the lien out of your personal injury settlement proceeds. As part of your settlement with the liability carrier, the insurer will require you to satisfy all outstanding liens for your medical treatment related to the collision.
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Even if the health insurance provider did not file a lien, you have an obligation to pay the lien. Your lawyer is following the correct procedure.
Different types of "lean" exist. Only in emergency services providers file liens in the county records. Health insurers do not file liens, but instead give notice of subrogation rights. Federal law applies if the plan was provided by an employer. Otherwise, state law governs (results can be markedly different). Governmental entities providing benefits do not even have to give notice of their right to reimbursement. This is complicated, and you should defer to your lawyer.
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This is very routine. Your attorney has to get the bills reduced and get you the biggest amount possible before he can disburse money. Once all the bills are reduced and all expenses accounted for, he will be ready to provide you with a detailed accounting of where every penny in the settlement is being allocated. I'm sure your attorney has explained this to you.
A lawyer MUST hold the settlement funds in trust account until all liens are satisfied.
Many attorneys have already provided excellent responses regarding the numerous types of "liens".
All liens are NOT created equal. Some liens must be "filed", the majority do not!
It is in your best interest that your attorney tries to get your medical bills reduced. The more your attorney reduces the medical bills, the more in your pocket.
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