Disclaimer: This article provides general information about New Mexico law and is not legal advice. Consult a qualified attorney for advice tailored to your situation.
Detailed Answer
Understanding Medical Liens in New Mexico
In New Mexico, health care providers secure liens on personal injury recoveries for services rendered. Under NMSA 1978, Section 48-6-3, a licensed provider who treats an injured person can file a lien against any settlement or judgment obtained from that claim. Providers must follow specific procedures to perfect their liens and protect their payment rights.
Types of Outstanding Medical Bills and Liens
- Private provider liens (hospitals, doctors, clinics).
- Medicare liens under the federal Medicare Secondary Payer Act.
- Medicaid liens per NMSA 1978, Section 27-2-14.
- Worker’s compensation or other subrogation claims.
Key Steps to Handle Medical Liens During Settlement Negotiations
- Compile Lien Documentation: Request itemized billing and official lien filings from each provider.
- Verify Lien Validity: Ensure each lien complies with NMSA 48-6-3. Check for correct filing deadlines and notice requirements.
- Obtain Written Payoff Quotes: Ask providers for a written payoff demand. This often excludes anticipated future costs.
- Negotiate Reductions: Providers frequently accept reduced lump-sum payments. Explain your settlement constraints and propose a compromise.
- Allocate Settlement Funds: Coordinate with your attorney and the insurer to designate portions of the settlement for lien payoffs, legal fees, and client net recovery.
- Secure Lien Releases: Require signed lien release forms from each provider in exchange for payoff amounts. Incorporate these releases into the settlement agreement.
- Address Government Liens: Follow federal rules for Medicare liens and notify the New Mexico Human Services Department for Medicaid recoveries, in accordance with NMSA 27-2-14.
Relevant Statutes
- Medical provider liens: NMSA 1978, Section 48-6-3
- New Mexico Medicaid recovery: NMSA 1978, Section 27-2-14
Helpful Hints
- Act promptly: Providers must meet strict deadlines to perfect liens.
- Keep all correspondence in writing to maintain clear records.
- Consider a lien resolution professional if you face multiple liens.
- Review each settlement draft to confirm lien obligations are fully addressed.
- Maintain open communication between your attorney, providers, and the insurer.
- Remember that federal Medicare lien rules apply even for private treatments.