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This article explains, in plain language, how settlement money typically reaches you under Wisconsin law once an insurance company generates a settlement check. It covers common check payees, what your attorney (if you have one) must do, how liens and government health programs can affect distribution, and practical steps you can take to protect your recovery. This is educational information only and not legal advice. For specific guidance about your situation, consult a Wisconsin-licensed attorney.

Who the check is usually made payable to

Insurers sometimes make settlement checks payable in different ways. The most common options are:

• Payable only to the injured person (the claimant).
• Payable to the injured person and the claimant’s attorney or law firm (common when an attorney represented the claimant).
• Payable to multiple parties including medical providers, Medicare/Medicaid, or lienholders if the insurer acknowledges outstanding claims or obligations.

If you are represented by a lawyer

When an insurer issues a check that names both you and your attorney or your attorney’s firm, Wisconsin rules require the lawyer to handle those funds carefully. Wisconsin’s rules concerning lawyers’ handling of client funds (trust accounts and safekeeping) are set out in the Wisconsin Supreme Court rules for attorney conduct. See the rules on client trust accounts: Wisconsin Supreme Court Rules, Chapter 20.

Typical attorney steps after receiving a settlement check:

1. Endorse and deposit the check into the lawyer’s client trust account (IOLTA) rather than the lawyer’s business account.
2. Pay outstanding liens, medical providers, and any required government recoveries (for example, Medicaid or Medicare conditional payments), to the extent permissible and required by law or agreement.
3. Deduct agreed attorney fees and approved costs, after providing you with an itemized settlement statement explaining all deductions and the net amount payable to you.
4. Issue a final net-disbursement check to you and provide copies of releases and final bills or proof that liens were resolved.

If you are NOT represented by a lawyer

If the insurer issues a check only to you, the insurer typically expects you to sign a release and then endorse the check. You will then be responsible for making any payments to medical providers, lienholders, or governmental recovery programs. Because resolving liens and subrogation claims can be complex, many people in this situation consult a lawyer or a claims-resolution service before cashing the check.

Common payees and claims that can reduce your net recovery

Before you receive your net settlement, the gross amount can be reduced by:

• Attorney fees and case costs (if you hired counsel).
• Medical providers’ bills and providers’ liens or assignments.
• Health insurers’ subrogation claims or reimbursements for benefits they paid.
• Medicaid recoveries (state program repayment obligations) or Medicare conditional payment recovery.

Medicaid recovery is handled by Wisconsin’s Department of Health Services. General information on recovery and liens is available from the Department: Wisconsin DHS — Medicaid Recovery. For Medicare conditional payment issues, see the federal Centers for Medicare & Medicaid Services guidance: CMS guidance and manuals.

Timing: how long until you get your money?

Timing varies. Once the check is issued, common timing elements include:

• If the check is payable to an attorney and client, the attorney must wait until the check clears the trust account before disbursing funds — that can take several business days to a few weeks depending on the bank and any clearance issues.
• If government recovery or lien resolution requires negotiation or documentation (for example, obtaining a Medicare final conditional payment amount), disbursement can be delayed until those amounts are resolved.
• If the check is payable only to you, you can endorse and deposit it immediately, but you remain responsible for paying any lienholders. If lienholders assert claims after you cash the check, you could be personally responsible unless you preserved protections through settlement procedures.

What to do if a lien or subrogation claim appears after you cash a check

If you cash a settlement check and later a provider or insurer asserts a lien, you should:

1. Get the lien claim in writing and request documentation showing the basis and amount of the claim.
2. Consider consulting a lawyer to negotiate reductions or set-offs. Many lienholders will reduce demands when presented with a reasonable settlement breakdown or when negotiation is handled by counsel.
3. If you had legal representation, ask your attorney for a final accounting and documentation showing they attempted to resolve liens before disbursing funds.

What to check on the settlement statement

Before you accept or cash a settlement check, get and review a written settlement statement that lists:

• Gross settlement amount.
• Attorney fees and expenses (itemized).
• Payments to medical providers, insurers, Medicare/Medicaid, or other lienholders (itemized by payee and amount).
• Net amount payable to you.

Practical issues and common problems

• If the insurer makes the check payable to the wrong parties, do not sign or cash it. Ask the insurer to re-issue with correct payees.
• If the check names an attorney that no longer represents you, do not endorse it; contact the insurer and, if needed, a lawyer to resolve who should receive and deposit funds.
• If the insurer mails multiple checks (e.g., for property damage and for medical bills), track each separately and get receipts when you pay providers.
• If you disagree with a lien amount, ask for an itemized breakdown and consider negotiating a reduced payoff.

Where to get help in Wisconsin

If you are unsure how to proceed, consider these resources:

• Talk to a Wisconsin-licensed attorney experienced in personal injury or insurance claims.
• Contact the Wisconsin Department of Health Services for Medicaid-recovery questions: DHS Medicaid Recovery.
• For questions about lawyers’ handling of client funds, consult the Wisconsin Supreme Court Rules excerpt: Wisconsin Supreme Court Rules, Chapter 20.

Key takeaways

• Who’s named on the check controls next steps. If the attorney is a payee, the attorney must deposit the funds into a trust account and resolve liens and fees before giving you the net proceeds.
• Liens from medical providers, insurers, Medicaid, or Medicare can reduce your net recovery and often must be handled before you get funds.
• Review an itemized settlement statement before accepting funds. If in doubt, get legal help — resolving lien claims after cashing a check can be harder and more expensive.

Helpful Hints

• Ask for a written settlement statement before you sign any release or cash any check.
• Do not cash a check that lists payees you do not recognize or that names a lawyer who no longer represents you.
• If the check names your attorney, expect funds to pass through the attorney’s trust account and ask how long disbursement typically takes.
• Get written payoff demands from medical providers and insurers and try to negotiate reductions before funds transfer.
• Keep copies of every check, deposit slip, bank statement, release, and settlement statement for your records.
• If Medicaid or Medicare may have paid medical bills, obtain a written final demand from the agency so you know the exact repayment amount required.
• Consider tax guidance: portions of settlements may be taxable (for example, wage replacement) while others (physical injury pain and suffering) often are not. Consult a tax advisor for specifics.