How to Handle Medical Liens and Outstanding Bills When Negotiating a Settlement in Mississippi
Disclaimer: This article is for educational purposes only and does not provide legal advice. Consult a licensed attorney about your specific situation.
Detailed Answer
When you pursue a personal injury claim in Mississippi, medical providers, insurers, or government programs may assert liens on your settlement to recover treatment costs. Properly identifying and addressing these liens ensures you keep the maximum net recovery.
1. Identify All Potential Liens
- Hospital and Provider Liens: Under Mississippi Code § 41-41-15, hospitals may file a lien within 90 days of providing care. You must obtain a lien statement and verify its validity. (Miss. Code § 41-41-15)
- Medicare Conditional Payments: Medicare may pay treatment upfront and seek reimbursement under 42 U.S.C. § 1395y(b). You must request a conditional payment report and negotiate the amount. (42 U.S.C. § 1395y(b))
- Medicaid Liens: Mississippi Medicaid can file a claim against your recovery. The state recovers under Miss. Code § 43-13-117. You must notify the Mississippi Division of Medicaid and resolve any asserted claim. (Miss. Code § 43-13-117)
- Private Insurers and Health Plans: Review your health insurance’s subrogation clause. Insurers often have the right to repayment from any settlement funds.
2. Review and Validate Lien Amounts
Request itemized bills and lien statements. Confirm that charges are reasonable and relate directly to your injury. Dispute any incorrect or excessive amounts before settlement.
3. Negotiate Reductions
Most providers will accept a reduced lump-sum payment in exchange for waiving the remainder of the debt. Use one or more of these strategies:
- Offer a single lump-sum payment to close the lien.
- Argue that only “reasonable and necessary” treatment qualifies for lien recovery.
- Leverage timing: providers often accept discounts when you pay promptly.
4. Allocate Settlement Funds Properly
Coordinate with your attorney to draft a settlement disbursement order. It should specify payment amounts to each lienholder, attorney’s fees, costs, and your net recovery. Use an escrow or trust account to hold funds until all liens are resolved.
5. Obtain Releases and Waivers
After payment, secure written lien releases or waivers from each party. Keep records to prevent future claims against your recovery.
Helpful Hints
- Gather all medical records and bills early in your case.
- Request lien statements in writing and verify statutory deadlines.
- Engage a personal injury attorney experienced in lien negotiation.
- Keep meticulous records of all correspondence and payments.
- Check government program requirements (Medicare/Medicaid) before settlement.
- Consider a structured settlement to handle future medical expenses.
- Confirm that each lienholder issues a full release upon payment.