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Step-by-step process to verify and clear medical claims

1. Identify all possible claimants early. Ask your attorney to request an itemized list of all medical providers who treated you after the accident, plus any health insurers that paid benefits. Typical claimants include hospitals, physician groups, ambulance services, workers’ compensation carriers, private health insurers, Medicaid (HUSKY in CT), and Medicare.
2. Obtain written lien or subrogation statements. For each claimant request a written demand or lien statement showing: the date(s) of service, billed charges, payments received, the legal basis for the claim, and any statutory authority. Written documentation lets you verify accuracy and start negotiations.
3. Check whether a statutory lien applies. Connecticut law recognizes state recovery rights for public programs (see Conn. Gen. Stat. Ch. provisions on recovery of public assistance). For example, Connecticut allows the Department of Social Services to pursue recovery of Medicaid payments from third-party settlements; your attorney can cite the specific statute when negotiating with the state. You can review Connecticut statutes and find the relevant sections at the Connecticut General Assembly website: https://www.cga.ct.gov/ and the Department of Social Services site at https://portal.ct.gov/DSS for program-specific guidance.
4. Address Medicare and Medicaid (HUSKY) first. Federal Medicare rules (Medicare Secondary Payer) require identifying potential Medicare conditional payments and resolving Medicare’s interests before final distribution. Visit the Centers for Medicare & Medicaid Services information on recovery and coordination of benefits: https://www.cms.gov/Medicare/Coordination-of-Benefits-and-Recovery/Coordination-of-Benefits-and-Recovery. For Connecticut Medicaid recovery, the state may have statutory subrogation or reimbursement claims—your lawyer should contact the Connecticut DSS Third Party Recovery unit to obtain a claim amount or lien statement.
5. Verify charges and payments. Compare itemized medical bills to what actually remains unpaid. Many billed amounts are higher than what insurers accepted. Require proof of outstanding balances before agreeing to pay the billed amount.
6. Seek reductions and negotiate. Most private providers, hospitals, and insurers will negotiate. Common outcomes: a percentage of billed charges, a flat compromise amount, or acceptance of insurer-allowed amounts. For Medicare/Medicaid, there are formal procedures to obtain conditional payment amounts and to appeal or request reduction. Your attorney can negotiate reductions and argue statutory or contractual limitations on amounts recoverable.
7. Use escrow or court approval when necessary. If a defendant or insurer refuses to hold funds while liens are cleared, you may need to place settlement funds in escrow until lien resolution, or seek court approval for distributing proceeds. Connecticut courts and opposing insurers commonly require proof that lien claimants received notice and an opportunity to file claims against the settlement proceeds before releasing funds.
8. Get written releases and lien waivers. Never distribute settlement proceeds until you have a signed release or lien waiver from each claimant or a written agreement that limits the claimant’s recovery. A release should clearly state the claimant will not pursue further payment related to the incident.
9. Document final payoffs in closing paperwork. Keep copies of payoff checks, wire confirmations, escrow instructions, and release letters in your settlement file. These documents protect you if a claimant later resurfaces.

Typical timeline — what to expect

Exact timing varies with the type of claimant and case complexity. Typical ranges:

• Private providers and hospitals: 2–12 weeks. If providers respond promptly and negotiate, many liens clear within a few weeks. Complex billing disputes can extend the timeline.
• Private health insurers (subrogation): 4–12 weeks. Many insurers issue a demand letter and will negotiate a percentage. Some have standardized timelines; others take longer.
• Medicaid (state recovery): 6–16 weeks or longer. State agencies often have formal internal procedures and may require extra documentation; negotiation with the state can take additional time.
• Medicare conditional payment resolution: 3 months to over a year. Obtaining a conditional payment amount from Medicare and resolving disputes historically has been one of the slower parts of the process because of federal procedures. The CMS portal and the Medicare Secondary Payer Recovery Contractor process control much of the timing.
• If litigation or court approval is required: additional months. Court-ordered resolutions, motions to approve settlement, or disputes over allocation between future medical expenses and general damages add time.

Overall, a straightforward settlement with cooperative claimants may clear in a month or two. If federal programs or disputed bills enter the picture, plan for several months. In rare, complex cases (Medicare disputes, multiple providers, or serious disagreements) the process can take a year or more.

Who should handle the process

Because lien and subrogation law combines state and federal rules, most people rely on an attorney experienced in Connecticut personal injury settlements and public-program recovery. Attorneys know to:

• Send timely notices and releases
• Escrow funds or obtain court approval when necessary
• Use formal procedures to obtain Medicare conditional payment information and to request reductions or final demand letters
• Negotiate compromises with providers and insurers

If a claimant surfaces after you receive money

If a lienholder comes back after you distributed settlement funds, notify your attorney immediately. You may have to defend an action, and without releases you could be at financial risk. That is why obtaining releases or escrow before distribution is so important.