Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney in Virginia for guidance on your specific situation.
Detailed Answer
In Virginia, medical providers and health insurers can assert liens against a personal injury recovery to secure payment for treatment. Addressing and satisfying these liens properly is essential before you finalize any settlement or judgment.
1. Overview of Virginia Medical Liens
- Statutory Authority: Hospitals, physicians and X-ray facilities may file liens under Va. Code § 8.01-66.3 (https://law.lis.virginia.gov/vacode/title8.01/chapter3/section8.01-66.3/).
- Other Providers: Licensed practitioners (e.g., chiropractors, therapists) use Va. Code § 8.01-66.9 (https://law.lis.virginia.gov/vacode/title8.01/chapter3/section8.01-66.9/).
- Health Insurer Subrogation: Insurers can demand reimbursement under Va. Code § 38.2-3440 (https://law.lis.virginia.gov/vacode/title38.2/chapter34/section38.2-3440/).
2. Filing and Notice Requirements
To preserve lien rights, providers must:
- File a verified lien statement in the appropriate circuit court within six months of the last treatment.
- Mail written notice of the lien to the claimant and any known insurer within ten days of filing.
- Health insurers must demand subrogation within 120 days after issuing an explanation of benefits.
3. Negotiating and Verifying Lien Amounts
Before settlement:
- Obtain itemized medical bills and explanation of benefits (EOBs).
- Compare billed charges to typical in-network rates.
- Negotiate with providers and insurers for reduced lien amounts.
- Challenge any duplicate or erroneous charges.
4. Court Approval and Disbursement
At settlement or judgment:
- File a motion with the court to approve the distribution of settlement proceeds.
- The court allocates funds to attorneys’ fees, costs, and lienholders in priority order.
- Pay each lienholder their negotiated or full statutory amount to obtain a lien release.
5. Finalizing Your Recovery
After satisfying all liens and obtaining releases:
- Disburse the remaining funds to yourself or your case trust account.
- Keep copies of court orders and lien releases for your records.
Helpful Hints
- Track all lien filing deadlines and notice dates carefully.
- Request itemized bills and EOBs early in your case.
- Negotiate lien amounts; providers often accept discounts.
- Include lienholders in settlement discussions to avoid delays.
- File a court motion to distribute funds and satisfy liens.
- Obtain written releases from each lienholder before disbursing proceeds.
- Consult a Virginia personal injury attorney to navigate complex lien rules.