Personal injury law provides the right to pursue compensation for an accident, as long as you present evidence documenting the damages and the other party’s role in the incident. It also grants government agencies and hospitals the right to recoup their losses by taking out a medical lien against your settlement. This may come as a surprise to you, but understanding how it might affect your case will help you prepare.

How Medical Liens Play Into Personal Injury Cases

Hospital Stays & Treatment

In the state of Alabama, hospitals can take out an automatic lien on a patient’s settlement. This has to go through the recorder’s office in the hospital’s county at least 180 days after their release. It must also feature the name and address of the patient and hospital as well as the dates of the patient’s stay. Once everything is in order, the hospital’s lien will take precedence over all other claims to the money except for an attorney’s fees.

Medicare & Medicaid

People who depend on the government to cover their health care expenses can expect to provide some form of repayment. This is due to the Tax Equity and Fiscal Responsibility Act, which allows Medicaid, Medicare, and the Department of Veterans Affairs to lay claim to a settlement and prevent members from giving away their assets. While it’s only a portion, the amount should be enough to recover their costs.

How an Attorney Plans for Liens

Work with an attorney who excels in personal injury law. Before agreeing to the settlement offer, they’ll go over the liens as well as any outstanding bills that you may have to your name. Negotiations will then proceed, encouraging a lower amount in order to ensure a successful settlement. Once an agreement is reached, your lawyer will draft a confirmation letter and finalize the amount that the claimants will receive.

If you’re considering a personal injury claim, reach out to Ray T. Kennington, Attorney at Law, of Enterprise and Ozark, AL. He boasts more than 35 years of experience and provides comprehensive legal advice on matters of personal injury law, bankruptcy, and Social Security disability claims. With flexible scheduling and a commitment to client confidentiality, this local attorney is ready to take your case. Call (334) 445-1200 today to set up a consultation or visit his website for a full list of services.