Detailed answer — what to expect under Virginia law

In Virginia, when you recover money for an injury (through settlement or judgment), certain medical providers and payors can assert claims against that recovery. Those claims commonly include unpaid medical bills from hospitals, doctors, and chiropractors, plus reimbursement claims from health insurers, Medicare, or Medicaid. Whether those amounts will be deducted from your settlement depends on the type of claim, how it was asserted, and any agreements you sign.

Types of claims that can reduce your settlement

• Provider bills and asserted liens: Individual providers (including chiropractors) often request payment directly from your settlement. Some providers may try to assert a lien or demand reimbursement before they will release records or lien releases.
• Hospital or statutory liens: Some institutions may have statutory processes or internal policies to pursue recovery from a third-party recovery. Virginia law governing civil procedure and lien-related matters is found in Title 8.01 of the Virginia Code: Va. Code Title 8.01.
• Health insurer subrogation and repayment: Private insurers, ERISA plans, Medicare, and Medicaid may have contractual or statutory rights to be repaid from your settlement for medical amounts they paid on your behalf. These payors may assert subrogation or reimbursement claims that can reduce the amount you ultimately receive.
• Workers’ compensation: If workers’ comp paid benefits for the same injury, the employer or insurer may have a lien or right of reimbursement against your settlement.

How those claims are handled in practice

Providers and payors typically follow these steps:

1. Bill you and request payment.
2. Provide a written statement of the amount owed and may send a “lien” or demand letter to your attorney or the opposing party.
3. If unpaid, they may sue to enforce a lien or assert subrogation in court or negotiate a reduced payoff.

From a settlement, payments are usually allocated to pay attorney fees, costs, and to satisfy liens or subrogation claims before the plaintiff receives net proceeds. The final allocation depends on the contracts and state rules, any court orders, and negotiations between your attorney, the claimant providers, and insurers.

Chiropractor claims specifically

Chiropractors are medical providers. If a chiropractor treated you for an injury related to the claim, they can charge you for services and may demand payment from recovery funds. Whether they have an enforceable lien depends on whether they followed any applicable notice or filing procedures under Virginia law and whether a written agreement exists. In many cases, chiropractors will negotiate a reduced payoff to be paid from the settlement rather than litigating the claim.

Important Virginia law considerations

Virginia law governs procedures for asserting liens and other claims against settlement funds; see the Virginia Code for civil procedure and related statutes: Va. Code Title 8.01. Other statutes and federal rules (for Medicare/Medicaid and ERISA plans) can affect repayment obligations and timing.

Common outcomes

• Uninsured providers (including chiropractors) often accept a negotiated reduced payment from a settlement rather than full billed amounts.
• Medicare or Medicaid have formal recovery processes and may require repayment; failing to address these can affect eligibility and future benefits.
• Private insurers and ERISA plans may assert subrogation rights and often negotiate, but they may also litigate if a large repayment is sought.

What you should do

1. Hire a Virginia personal-injury attorney early. An attorney will identify lienholders, request written payoff statements, and negotiate or litigate to reduce claims against your recovery.
2. Don’t sign a settlement release until all lien claims are identified and resolved or a court-directed escrow plan is in place.
3. Request written lien releases. Obtain release documents showing the provider is paid and will not pursue you further.
4. Identify government payors (Medicare/Medicaid) immediately—these payors have specific rules and deadlines for claiming repayment.

Simple hypothetical

Suppose you settle for $50,000. Medical bills total $12,000 (including a chiropractor bill of $4,000). Your attorney’s contingency is 33.33% before lien negotiation. A likely path:

• Attorney negotiates the chiropractor’s claim down to $1,800 and other providers down to $7,000.
• Attorney fee (33.33%) on gross settlement = $16,665.
• After paying negotiated provider/payor amounts, you receive the remainder. Exact math depends on whether fees are calculated from gross or net (check your fee agreement).

Every case differs. Negotiation can substantially reduce what providers collect from your settlement.

Helpful Hints

• Get an attorney before settling. Attorneys know how to spot and reduce liens.
• Ask for itemized bills and written payoff statements from every provider and insurer.
• Identify government payors (Medicare/Medicaid) early—repayment rules and timelines differ from private insurers.
• Do not sign a full release until all lien issues are resolved or funds are placed in escrow to cover disputed claims.
• Request written lien releases after payment. Keep those releases with your settlement records.
• Negotiate aggressively. Providers often accept less than billed charges when they know recovery is limited to settlement proceeds.
• Read your contingency agreement carefully to see whether attorney fees are taken from gross or net settlement—this affects how much remains for lien payments.

Disclaimer: This article explains general principles of Virginia law and common practices. It is educational only and not legal advice. Laws change and your situation may have unique facts that alter the outcome. To protect your rights, consult a licensed Virginia attorney about your specific case.