Detailed Answer
If you’ve been injured in New York and are finalizing a personal injury settlement or judgment, you must address any medical liens before distributing funds. In New York, health care providers and certain insurers have a statutory lien against your recovery under the New York Lien Law (Sections 190–198). Satisfying these liens preserves your net recovery and ensures compliance with state law.
1. Identify All Medical Liens
Start by requesting itemized billing statements from each provider—hospitals, physicians, therapists, and diagnostic centers. Providers must assert liens in court under New York Lien Law §190. You can search Supreme Court records for lien notices. (Lien Law §190)
2. Confirm Insurance Subrogation Interests
If your health insurer or no-fault auto carrier paid medical expenses, they may have subrogation rights. Under CPLR §4545, insurers must notify you of their lien. Verify amounts paid and any contractual write-offs.
3. Negotiate or Challenge Lien Amounts
Not all billed amounts are enforceable. You can negotiate reductions based on usual and customary rates or statutory caps. For federal programs like Medicare, liens follow federal regulations (42 C.F.R. §411.37–.47). If a provider’s claim seems excessive or noncompliant, you can petition the court for a determination of a reasonable lien.
4. Allocate Settlement Proceeds
Once lien figures are agreed or adjudicated, set aside settlement funds to satisfy those liens. From the gross recovery, deduct attorneys’ fees (typically governed by your retainer and CPLR §8001–8007), case costs, and approved liens before disbursing the balance to you.
5. Obtain Releases and File Satisfactions
After paying each lienholder, secure written releases or satisfactions of lien. File these with the court clerk to clear the record. This prevents future claims against your award.
Helpful Hints
- Gather all medical records and billing statements early.
- Ask for lien worksheets or itemizations to understand each charge.
- Work closely with your attorney before making any payments.
- Watch for third-party administrators seeking lien payments.
- If a lien is disputed, consider a court petition to resolve it.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For advice specific to your situation, consult a licensed attorney in New York.