Medical liens are common in Nevada injury cases like car accidents. The medical care provider offers you immediate treatment at little or no upfront cost, but then has the legal right to be paid directly from the settlement proceeds or verdict.
Liens are used when you cannot afford to wait for a personal injury settlement or jury award, and:
- You do not have health insurance coverage, Medicare, Med Pay or other “no fault” insurance, or
- You cannot afford to pay the deductible and/or co-pays under your medical insurance policy.
Finding a doctor, chiropractor, or therapist willing to work on a “lien basis” in Nevada can be challenging.
Our Las Vegas personal injury lawyers work with a variety of caring healthcare professionals willing to treat patients in exchange for a lien.
The following flowchart illustrates the medical lien process in Nevada:
To help you better understand medical liens in a Nevada injury or accident case, our Nevada personal injury lawyers discuss below:
- 1. How does a medical lien work?
- 2. What if I lose?
- 3. When should I hire a doctor on a lien?
- 4. Why do I need a lawyer?
- Additional reading
Finding a Nevada doctor, chiropractor or therapist willing to work “on credit” can be challenging, but we can help.
1. How does a medical lien work?
If you are injured in Nevada by someone’s negligence or intentional act, you may be able to sue that person or their insurer for your damages. This includes compensation for medical bills.
However, the other side rarely admits being an at-fault party right away. Even when it does, the wrongdoer’s insurer or lawyer often requires extensive proof before paying medical bills after:
- a motor vehicle collision,
- a slip-and-fall,
- a product liability accident, or
- other injury case.
In the meantime, however, you still need medical treatment. If you have health insurance, Medicare, or Med Pay insurance, your insurer should pay the bills in the interim.
In other cases, you may need to receive such services “on credit.” This credit is secured by a lien on the proceeds you ultimately receive from a lawsuit or out-of-court settlement.
Some types of liens are created automatically by a provision of law.1 Most, however, are created by a contract between:
- you and
- your provider.
Once you have signed the agreement, the doctor will “perfect” the lien and send a notice to the responsible insurer.2 This will give the doctor the right under state law to be paid first before you receive any funds by way of judgment or settlement.
2. What if I lose?
If you do not recover settlement money from your personal injury claim to pay your medical expenses, our law firm may be able to negotiate a reduction of the lien.
The medical professionals we work with are usually cooperative in negotiating their bills. They understand that some repayment is better than nothing.
Liens should usually be avoided unless there is no other way to get medical treatment.
3. When should I hire a doctor on a lien?
In general, a lien is used when there is no other way for you to get medical treatment after an accident.
People sometimes think it is better to use a lien instead of health insurance because settlements in personal injury cases are often based on a multiple of your medical bills.
However, your doctor bills will initially be sent out at the doctor’s full rate for such services. The discount negotiated by your health insurer will apply only AFTER the bills have been submitted to your insurer for reimbursement. If the liable party’s insurer makes a settlement offer, it will be taking into account the full value of the doctor’s services.
Additionally, since you are responsible for whatever portion of your medical bills is not paid by an insurer, you want that balance to be as low as possible.
Putting the claims through your health insurance company means your costs will be limited at most to your unpaid:
- deductible and
- co-pays.
Since health insurance providers usually carry out-of-pocket maximums, your potential losses are minimized.
4. Why do I need a lawyer?
Personal injury liens are enforceable contracts. The forms the doctor or hospital uses will have been written by their lawyer. Predictably, the terms will favor them and not you.
When your lawyer drafts the agreement, you will usually end up with more favorable terms. For instance, your lawyer may be able to get a provision into the contract that discounts the amount you owe in the event:
- you do not get a sufficient settlement or
- you lose your lawsuit.
Also, a good personal injury attorney can negotiate medical bills and liens after settlement – often getting them reduced or even written off completely. Call now for legal advice.
Additional Reading
For more in-depth information, refer to these scholarly articles:
- A Common Conflict: Common Fund Doctrine and Medical Provider Liens in Tort Settlements – Boston College Law Review.
- Legality and Ethics of Lien Uses in Medicine – Missouri Medicine.
- Preying on Pain: A Legal and Bioethical Analysis of How Hospitals Profit from Placing Hospital Liens on Medicaid Patients’ Accident Recoveries – Wake Forest University.
- Healthcare Liens and the Common Fund Doctrine: The Need for Legislative Action to Prevent Fee Shifting at the Expense of Healthcare Providers – Iowa Law Review.
- “Disingenuous and Somewhat Deplorable” A Look at Hospitals’ Use of Healthcare-Provider Liens to Reap a Windfall – Florida State University Law Review.
Legal References:
- For instance, when Medicare is used to pay for medical services in a personal injury case, the government automatically has a lien for reimbursement from the proceeds of a personal injury lawsuit or out-of-court settlement. 42 U.S.C. 1395y(b)(2).
- The details of how this happens are unimportant to the plaintiff. The important thing to remember is that even if the lien is not perfected, you are still legally responsible for your medical bills.