Detailed Answer
In West Virginia, when you reach a personal injury settlement or verdict, medical providers and insurers can assert liens against your recovery to secure payment for treatment. Satisfying these liens is essential before you finalize your recovery to prevent future liability. Below is the general process under West Virginia law.
1. Identify All Potential Liens
Under W. Va. Code §55-7-1, hospitals, physicians and other providers may file a lien for medical services related to negligence. To perfect this lien, providers must file a notice with the county clerk within 90 days after the last treatment or within 30 days after service of process in your lawsuit. Additionally, Medicaid and private insurers may have subrogation rights. Federal programs like Medicare enforce liens under the Medicare Secondary Payer Act, 42 U.S.C. §1395y(b).
West Virginia hospital lien statute: W. Va. Code §55-7-1.
2. Confirm Lien Validity
Ask each claimant for a written lien statement. Verify it was timely filed and complies with WV Code deadlines. Invalid or late liens may be challenged in court.
3. Obtain Itemized Statements
Request detailed billing records and supporting documentation. This lets you review charges and negotiate reductions if appropriate.
4. Negotiate or Challenge Liens
Often, providers will accept a percentage of the billed amount. You or your attorney can negotiate a settlement with each lienholder. If a lien is invalid, file a motion in the county circuit court to contest it.
5. Allocate Settlement Funds
Your gross recovery must cover all valid liens. Your attorney usually holds settlement proceeds in trust. After negotiating lien reductions, deduct the agreed lien amounts, attorney fees, court costs and other expenses.
6. Obtain Releases and Satisfaction Letters
Before disbursing funds, get written lien releases from each provider and a satisfaction document for Medicaid or Medicare. For federal liens, file a CMS conditional payment letter and final demand letter to clear the balance.
7. Distribute Net Proceeds
Once all liens are satisfied and releases are obtained, distribute the remaining proceeds to yourself. Ensure your attorney issues a final settlement statement detailing payments and deductions.
Helpful Hints
- Track filing deadlines: West Virginia providers must file liens within 90 days of the last treatment or 30 days after service of process.
- Keep organized records: Maintain copies of all notices, statements, releases and court filings.
- Negotiate proactively: Many providers accept reduced lien amounts, especially if prompt payment follows.
- Watch federal requirements: Medicare and Medicaid have strict reporting and payment procedures.
- Consider professional help: A West Virginia personal injury attorney can manage lien negotiations and court motions.