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Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.

Detailed Answer

Before disbursing settlement funds in Connecticut, you must identify and resolve any liens asserted by hospitals, health care providers, or insurers. Liens secure reimbursement for medical services or benefits paid on your behalf. Follow these steps to ensure full compliance with Connecticut law and protect all parties’ rights.

1. Identify Hospital and Health Care Provider Liens

Under Conn. Gen. Stat. §52-422n, a hospital or licensed health care provider may file a lien against settlement proceeds for care related to the injury. Key requirements include:

• Filing with the clerk of the Superior Court in the district where the personal injury action is pending or where settlement occurs.
• Serving you with notice of the lien within 90 days of patient discharge.
• Providing an itemized statement of charges and services in compliance with the statute.

Link to statute: Conn. Gen. Stat. §52-422n.

Steps to Confirm and Satisfy Provider Liens

1. Obtain a list of all treating providers. Ask your attorney or claims administrator for medical billing records and discharge summaries.
2. Search recorded liens by contacting the Superior Court clerk’s office or using the Connecticut Judicial Branch eServices portal.
3. Request a formal lien statement from each provider. Ensure it itemizes services, dates, and outstanding balances.
4. Verify the provider’s compliance with §52-422n timelines and notice requirements. Challenge any defective liens in court.
5. Negotiate lien amounts if bills seem excessive or duplicative. Many providers will accept a discounted payoff in exchange for prompt payment.
6. Obtain a signed lien release or satisfaction document from each provider once you pay their agreed balance.

2. Identify and Resolve Insurer Subrogation Claims

Insurance companies often assert subrogation rights to recover benefits paid on your behalf, such as under health or disability policies. While no single statute governs all subrogation claims in Connecticut, insurers rely on policy terms and general contract law principles (see Conn. Gen. Stat. §38a-321 for related subrogation concepts).

Steps to Handle Insurer Liens

1. Compile a list of insurers that provided benefits (e.g., health, auto, workers’ compensation).
2. Send each insurer a written request for their subrogation statement. Include policy numbers, claim numbers, and copies of relevant medical bills.
3. Review each insurer’s calculation of benefits paid, offsets, and any deductible or co-pay adjustments.
4. Negotiate reductions if benefits overlap with other coverage or if the insurer’s demand exceeds statutory or contractual limits.
5. Secure a formal release of subrogation rights or a settlement agreement from the insurer before disbursement.

3. Coordinate Lien Resolution with Settlement Disbursement

Once you resolve all liens:

• Hold remaining settlement funds in escrow until all releases are obtained.
• Provide your settlement administrator or attorney with copies of lien releases and satisfaction agreements.
• Disburse funds in this order: attorney fees and costs, lien payments, and then net client recovery.
• Retain records of all payments and releases for future reference and to defend against post-settlement claims.

Helpful Hints

• Start lien identification early. Providers have strict filing deadlines.
• Use certified mail for all correspondence to insurers and providers.
• Keep organized records: lien statements, court filings, releases.
• Consult billing experts or a medical lien resolution firm if multiple providers are involved.
• Verify that insurer releases expressly waive all subrogation rights.
• Retain a small reserve in escrow to handle late or disputed lien claims.