How to Handle Medical Liens or Outstanding Bills When Negotiating a Settlement in MT

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

Detailed Answer

When you negotiate a personal injury settlement in Montana, you must address all medical liens and unpaid bills tied to your claim. Montana law lets certain health care providers, including hospitals, secure liens against your recovery for reasonable charges. Other providers and insurers may assert subrogation or balance-billing rights.

1. Identify All Liens and Bills

Start by ordering your full medical records and billing statements. Check for:

  • Hospital liens under Mont. Code Ann. §50-9-202 and related provisions.
  • Health insurer subrogation claims in your insurance policy language.
  • Outstanding balances from doctors, therapists, or imaging centers without statutory lien rights.

2. Review Statutory Deadlines

Under Mont. Code Ann. §50-9-204, hospitals must file a lien claim within 180 days after the patient’s discharge. Missed deadlines can invalidate the lien.

3. Negotiate Reductions

Most providers accept a percentage of billed charges. You or your attorney can:

  • Request an itemized statement.
  • Offer a lump-sum payment in exchange for waiver of the remaining balance.
  • Negotiate discounted rates based on Medicare or Medicaid reimbursement schedules.

4. Address Insurance Subrogation

If your insurer paid medical costs, it may seek reimbursement from your settlement. Review your policy’s subrogation clause. Negotiate to cap reimbursement or allocate funds directly from settlement proceeds.

5. Secure Lien Releases

Before you disburse settlement funds, obtain written releases for each lien and billing claim. An escrow or joint check arrangement can protect you against future demands.

Disclaimer

This article provides general information and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.

Helpful Hints

  • Keep detailed records of all medical services and bills.
  • Verify lien filings with the county clerk.
  • Ask providers for written confirmation of any negotiated reductions.
  • Consider using an escrow account to manage disbursements safely.
  • Consult a personal injury attorney before signing any settlement agreement.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.