Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When you negotiate a personal injury settlement in Wyoming, you must identify and resolve all medical liens or outstanding bills before finalizing any deal. Unresolved liens can reduce your net recovery and lead to future claims against you. Follow these steps under Wyoming law to protect your award.
1. Identify Lien Holders and Outstanding Balances
Start by requesting an itemized statement of all medical services you received. Hospitals, clinics and health insurers may assert liens or subrogation rights against your settlement. Under Wyoming law, health insurers have subrogation rights per W.S. 26-18-706 (Title 26, Insurance) and the collateral source rule prohibits reducing a defendant’s liability due to your insurance payments (W.S. 1-1-109; Title 1, General Provisions).
2. Verify and Challenge Charges
Examine each bill for duplicate services, improper billing codes and charges that exceed usual-and-customary rates. Compare billed amounts with Medicare or Medicaid fee schedules. If you spot discrepancies or inflated fees, challenge them in writing or request an audit before settlement.
3. Negotiate Lien Reductions
Many providers will accept reduced payments to avoid collection costs. Offer a percentage of the billed amount—often between 40 % and 60 %—in full satisfaction. Obtain written confirmation of any reduction agreement to prevent post-settlement disputes.
4. Allocate Settlement Proceeds
Draft your settlement release to break down how funds apply to medical expenses, lost wages and noneconomic damages. Specify the dollar amount designated for medical bills and authorize your escrow agent or insurer to disburse that portion directly to lien holders.
5. Use Escrow or Interpleader When Necessary
If you face competing lien demands, consider depositing disputed funds into an escrow account or filing an interpleader action. This strategy shifts distribution issues to the court and protects you from double liability.
Helpful Hints
- Request all lien statements and subrogation demands early in your case.
- Obtain a detailed billing ledger to uncover errors or duplicate entries.
- Confirm any PIP or health insurer subrogation rights under Title 26.
- Document all lien reductions or payment plans in writing.
- Allocate settlement funds clearly in your release to prevent surprises.
- Consider consulting a personal injury attorney for complex lien disputes.