Quick answer
Yes — medical bills and chiropractor charges often reduce the money you actually receive from a personal-injury settlement in Utah. Those reductions can come through statutory or contract liens, health-insurer subrogation or reimbursement claims, and repayment obligations to government programs (like Medicaid or Medicare). How much is deducted depends on the type of claim, what was agreed with the provider, and whether your attorney negotiates reductions.
Detailed answer — how Utah cases usually work
1. Types of claims that can reduce a settlement
- Statutory or contractual provider liens: Some providers (hospitals, clinics, possibly chiropractors who signed a lien agreement) can place a lien on recovery from a third-party injury claim so they can be paid from the settlement or judgment.
- Assignment of benefits or written lien agreements: A chiropractor or doctor may have you sign an agreement treating future recovery as the payment source. These agreements can let the provider assert a claim directly against your settlement.
- Insurer subrogation/reimbursement: Your health insurer (including ERISA plans) that paid your bills may have a right to be reimbursed from your recovery. These are usually contractual rights and can sometimes be negotiated down.
- Government programs (Medicaid/Medicare): If Medicaid or Medicare paid for treatment, federal and state law give them strong rights to recover conditional payments or to be reimbursed from any tort recovery.
- Provider unpaid bills (no formal lien): Even without a filed lien, an unpaid provider can send a demand for payment and seek to enforce it; insurers and hospitals may use billing collection or balance-billing practices that affect your net recovery.
2. How the money flow commonly happens
When you and your attorney reach a settlement, several charges are typically handled before you get a check. Although every case differs, the typical order is:
- Attorney fees and litigation costs (often agreed as a percentage or flat fee).
- Payments required by law (court-ordered liens, certain statutory liens) and mandatory government repayments (e.g., Medicaid/Medicare conditional payments).
- Negotiated payments to private providers and insurers (medical providers, chiropractor liens, subrogation demands).
- Net amount to you.
Because attorney fees are usually charged against the gross recovery, providers and insurers are often paid from the funds remaining after fees and costs are deducted — though priorities can vary depending on lien statutes or court orders.
3. Utah-specific considerations
Utah law permits healthcare providers and other parties to assert claims against personal-injury recoveries in certain circumstances. Whether a chiropractor or other provider can legally enforce a lien depends on the nature of the agreement you signed with them and on applicable statutory or case law. For the official Utah Code and to review the statutes and definitions that may apply to liens and third-party recovery, consult the Utah State Legislature website: https://le.utah.gov/xcode/.
Specific rules apply if government-funded health programs paid your bills. Utah Medicaid and federal Medicare have formal recovery processes and deadlines — these programs must generally be notified about the claim and expect repayment from the settlement. See Utah Medicaid information at https://medicaid.utah.gov/ and federal Medicare recovery resources at the Centers for Medicare & Medicaid Services: https://www.cms.gov/.
4. Negotiation and reduction of liens
Medical and chiropractor claims against settlements are often negotiable. Common strategies include:
- Asking providers to accept a reduced lump-sum payoff in exchange for a lien release.
- Requesting itemized bills and challenging unrelated or duplicate charges.
- Invoking plan rules (ERISA plans sometimes have negotiated rates that limit recovery).
- Using your attorney to coordinate with health insurers, Medicare/Medicaid, and providers to obtain conditional-payment statements and to negotiate compromises.
5. Practical example
Hypothetical: You settle for $50,000. Your contingency fee agreement is 33% ($16,500), and litigation costs are $2,000, leaving $31,500. If your chiropractor asserts a $7,000 lien and your health insurer demands $8,000 in subrogation, and Medicare has a conditional payment of $3,000, you may need to pay those amounts (or negotiated reduced amounts) before receiving the final net check. If the parties negotiate the chiropractor down to $4,000 and the insurer to $4,500, you would receive more money. How much actually ends up paid depends on negotiation and statutory priorities.
6. Steps to protect your recovery
- Notify your attorney about every provider who treated you. Attorneys will often handle lien resolution.
- Obtain detailed, itemized bills and lien statements from providers and conditional-payment summaries from Medicare and Medicaid.
- Do not sign releases or accept settlement money until lien and subrogation issues are resolved or until your attorney confirms how liabilities will be paid.
- Ask for written lien waivers or releases when a provider accepts a negotiated payoff.
- Be aware government programs often have strict timelines and must be notified to preserve your right to use settlement funds to repay them appropriately.
When to call a lawyer
If you have multiple providers asking for payment, if Medicare or Medicaid is involved, or if providers filed liens, you should discuss the situation with a Utah personal-injury attorney who regularly handles lien resolution. Attorneys who handle these matters know how to obtain pay-off quotes, negotiate reductions, and protect your net recovery.
Helpful hints
- Keep all medical bills, receipts, and records in one place. Itemized bills help identify accurate lien amounts.
- Ask for written statements of lien amounts and for any supporting documentation before you agree to pay.
- Insist on written lien releases when a provider accepts a negotiated payment.
- Contact Medicare or Medicaid early. Those programs often require specific notices and have strict deadlines for asserting claims.
- Do not cash or disburse settlement funds until you know how outstanding liens will be handled.
- Talk to an attorney about the potential to reduce liens; many providers will accept less than billed amounts when faced with a prompt lump-sum payoff.
- If you have health insurance that paid bills, review your plan’s subrogation clause — some plans have caps or lien-priority rules that affect how much they can recover.
Disclaimer
This article explains general principles and common practices under Utah law but is not legal advice. Laws and rules change, and every situation has unique facts. For advice about your specific situation, contact a licensed Utah attorney experienced in personal-injury and lien resolution.