Detailed Answer: Satisfying Medical Liens Before Personal Injury Recovery in Pennsylvania
When you secure a personal injury settlement in Pennsylvania, medical bill liens can attach to your recovery. These liens allow providers to claim payment for treatment costs. Under the Medical Care Availability and Reduction of Error (MCARE) Act (40 P.S. § 1301.501 et seq.) and the Hospital Lien Act (28 P.S. § 2651 et seq.), you must satisfy these liens before finalizing your recovery. The following steps outline the process for clearing medical liens and distributing net settlement proceeds.
- Request and review lien statements
Ask each medical provider for a written lien statement. Under the MCARE Act, providers must file and serve lien notices in the court where your claim is pending within 30 days of your last treatment. - Verify charges and lien validity
Obtain itemized bills. Compare charges to standard rates. Dispute any incorrect or inflated amounts. - Negotiate or challenge liens
Providers often accept reduced payoffs. Your attorney can negotiate lower amounts. If a lien is invalid or excessive, file an objection in court and attend a hearing. - Include liens in settlement documents
When drafting your settlement agreement, list all liens and proposed payoffs. Exception language can protect funds if any lien remains unresolved. - Escrow and pay liens
Your attorney will hold settlement funds in escrow. They then distribute payments directly to lienholders. Confirm receipt with payoff letters. - Obtain lien releases
After payment, secure written satisfactions of lien from each provider. File these releases with the court to clear your record.
Following this process ensures all medical liens are satisfied and prevents future collection against you.
Helpful Hints for Clearing Medical Bill Liens
- Start lien identification early in your case.
- Request itemized billing and lien statements immediately after treatment.
- Keep all communications in writing.
- Work with an attorney experienced in Pennsylvania lien law.
- Track payments and secure releases promptly.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed Pennsylvania attorney to address your specific situation.