Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an attorney licensed in Oklahoma to discuss your situation.
Detailed Answer
When you settle a personal injury claim in Oklahoma, you must address any outstanding medical bills and liens before disbursing funds. Providers and insurers may assert a right to recover the cost of treatment that your settlement will cover. Oklahoma law governs certain medical liens, and federal or state health programs may also have subrogation rights.
1. Identify All Liens and Outstanding Balances
- Obtain a lien search or ask your attorney to request statements from every medical provider who treated you after the injury.
- Check for health insurer subrogation demands, ERISA plans, Medicare or Medicaid claims.
2. Understand Oklahoma’s Hospital Lien Act (42 O.S. § 61 et seq.)
Oklahoma’s Hospital Lien Act allows hospitals and certain providers to file a lien against any recovery you obtain for injuries they treated. Key points:
- Prior to settlement, the provider must file a written lien in the county where treatment occurred. (42 O.S. § 61: OSCN link).
- Liens attach only to that portion of your recovery that compensates for medical expenses.
- If the provider fails to perfect the lien in time, you may challenge its enforceability.
3. Address Medicaid and Medical Assistance Liens
If you received Medicaid benefits, Oklahoma law requires reimbursement from any third-party recovery. The State can file a lien under the Oklahoma Medical Assistance Act (63 O.S. § 5053). See 63 O.S. § 5053.
4. Negotiate Reductions with Medical Providers
- Many providers will accept a discounted payoff rather than pursue full billing rates—often 25–50% off.
- Your attorney can negotiate a global pay-out to cover all provider claims, known as a “global medical lien settlement.”
5. Allocate Settlement Funds Carefully
When structuring the final release and settlement disbursement, you must earmark funds for:
- Attorney fees and case expenses.
- Payment of medical liens and bills.
- Client net recovery.
6. Obtain Lien Releases in Writing
Before distributing funds, secure written lien releases or payoff letters from all providers and from Oklahoma Medicaid (if applicable). This prevents future collection attempts.
Helpful Hints
- Start lien investigations early—some providers file weeks or months before trial.
- Keep detailed records of each medical provider’s billing and your insurer’s payments.
- Consider using a settlement administrator or your attorney’s trust account to handle lien pay-outs.
- Be aware of release language: it should reference only claims tied to your injury date and limits.
- Check whether your employer’s health plan has subrogation rights under ERISA.
- If Oklahoma Medicaid is claiming reimbursement, request an itemized claim and verify charges.