Disclaimer: This is not legal advice. For advice about your specific situation, consult a qualified Indiana attorney.
Detailed Answer
1. Identify and Verify Statutory Medical Provider Liens (IC 34-52-4)
Under Indiana Code § 34-52-4 (IC 34-52-4), licensed medical providers have a lien for services related to an injury. To handle these liens:
- Obtain itemized bills from each provider. Confirm dates of treatment and service codes.
- Verify that each provider filed a proper lien notice within 90 days after the last treatment.
- Confirm the lien amount matches unpaid balances, not amounts the provider billed originally.
2. Address Medicaid and Government Health Coverage Liens (IC 12-15-21-4)
If you received Medicaid or other state benefits, Indiana Code § 12-15-21-4 (IC 12-15-21-4) lets the state seek reimbursement from your settlement. To manage this lien:
- Contact the Bureau of Developmental Disabilities Services or the Medicaid Recovery Unit.
- Request a statement of claim showing the exact reimbursement amount.
- Negotiate a reduction if your total recovery cannot cover full subrogation.
3. Coordinate Private Health Insurer Subrogation
Private insurers may have subrogation rights under federal ERISA rules or Indiana contract law. To protect your settlement:
- Review your group health plan’s subrogation clause.
- Ask the insurer for a formal claim letter stating the amount owed.
- Negotiate a reasonable offset, especially for non-medical damages (pain and suffering).
4. Negotiate Liens with Providers
Providers often expect full payment, but they may accept less:
- Present your total settlement amount. Explain that liens must fit within your net recovery.
- Offer lump-sum payment in exchange for a percentage reduction (often 20–40%).
- Get lien waiver letters in writing before disbursing funds.
5. Allocate and Finalize Your Settlement
Proper allocation and documentation prevent future disputes:
- Separate your settlement into medical expenses, lost wages, and pain and suffering.
- Hold contested lien amounts in escrow until resolution.
- Obtain full releases of lien rights from each provider before distributing proceeds.
Helpful Hints
- Compile all medical records and billing statements early.
- Track statutory deadlines for filing or challenging liens.
- Keep clear records of all negotiations and agreements.
- Consider using an escrow or trust account to manage disputed funds.
- Consult a personal injury attorney to ensure compliance with Indiana law.