Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in New Mexico for guidance on your specific situation.
Detailed Answer
1. What Are Medical Liens Under New Mexico Law?
In New Mexico, providers who treat accident victims can claim a lien on any third-party recovery for personal injuries. These liens ensure medical bills get paid from your settlement or judgment before you receive net proceeds. The statutory framework appears at NMSA 1978, Section 48-5-501 et seq. (48-5-502).
2. Identifying and Asserting Liens
After your initial medical treatment, each provider must file a written notice of lien in the county where you reside or where the provider rendered services. This filing typically occurs within 120 days of your last treatment (48-5-503). It should include:
- Your name and address
- Description of treatment dates and types
- Amount claimed due
- Provider’s name and mailing address
3. Requesting Lien Statements
When you negotiate with the insurer or opposing party, ask each provider for an itemized lien statement. Confirm:
- Accuracy of charges
- Correct service dates
- Whether any write-offs or insurance payments have reduced the balance
4. Negotiating and Reducing Liens
Providers often accept less than the full billed amount. Your attorney can:
- Present your settlement offer and request lien reduction
- Compare liens to insurance payments and medical records
- Document agreed reductions in writing
5. Satisfying Liens Before Disbursement
Before you receive funds, you must obtain a signed lien release from each provider. Steps include:
- Send written payoff figures and a copy of your settlement agreement
- Obtain a lien release or satisfaction document
- Include payment instructions (e.g., payable to the provider or their billing agent)
- Deliver releases and payments simultaneously to your settlement administrator or court clerk
Only after these liens are satisfied can you finalize your distribution of net settlement funds.
Helpful Hints
- Track deadlines: New Mexico law imposes time limits for filing and contesting liens.
- Request written lien reductions: Always get reduced balances in writing to avoid disputes.
- Hold settlement funds in escrow: Use a neutral third party until all liens clear.
- Review Medicare/Medicaid claims: Federal law may affect payment priority for beneficiaries.
- Consult a personal injury attorney: They can negotiate complex medical billing issues and protect your net recovery.