Common Liens in Connecticut Personal Injury Settlements

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

Detailed Answer

When you resolve a personal injury claim in Connecticut, several parties may assert rights to recover amounts they paid on your behalf. These claims, known as liens or subrogation rights, can significantly reduce the net proceeds you receive. Below is an overview of the most common liens under Connecticut law:

1. Hospital and Medical Provider Liens

Under the Connecticut Hospital Lien Act (C.G.S. § 52-550–553), hospitals and certain medical facilities that treat you for injuries may file a lien on up to 25% of your settlement or judgment. To be valid, the provider must:

• Record a written notice of lien with the clerk of the Superior Court within six months of your discharge.
• Serve you and the insurer or tortfeasor.

See C.G.S. § 52-551: Hospital Lien Defined.

2. Personal Injury Protection (PIP) Insurer Subrogation

Connecticut requires no-fault auto insurers to pay immediate medical bills under Personal Injury Protection (PIP). After you recover, the insurer may seek reimbursement from your settlement under C.G.S. § 38a-366. They must provide notice within 30 days of receiving settlement funds.

Learn more: C.G.S. § 38a-366.

3. Workers’ Compensation Liens

If you receive workers’ compensation benefits for an injury that also supports a third-party tort claim, the insurer has a right to reimbursement. Under C.G.S. § 31-294c, the workers’ comp carrier can assert a lien on your settlement. You must notify the carrier in writing before settling to avoid penalty.

See the statute: C.G.S. § 31-294c.

4. Medicare and Medicaid Subrogation

Federal and state law require Medicare and Connecticut Medicaid (Husky) to be reimbursed from your personal injury recovery for past medical expenses. Medicare’s rights arise under the Medicare Secondary Payer Act (42 U.S.C. § 1395y(b)). Connecticut Medicaid enforces subrogation under C.G.S. § 17b-90.

Connecticut Medicaid statute: C.G.S. § 17b-90.

5. Private Health Insurer Subrogation

Your private health insurer may have subrogation or reimbursement rights if it paid your medical bills. Many insurance contracts require you to repay medical benefits out of any third-party recovery. Watch for ERISA plans, where federal preemption may govern the claim.

6. Attorney Charging Lien

Connecticut common law recognizes an attorney’s charging lien for fees and costs incurred in prosecuting your claim. The lawyer must file notice before settlement or judgment to preserve the right.

7. Tax Liens

While most personal injury awards are non-taxable for physical injuries, if you owe federal or state taxes, the IRS or Connecticut Department of Revenue Services may enforce liens under 26 U.S.C. § 6321 or C.G.S. § 12-60.

Connecticut tax lien statute: C.G.S. § 12-60.

Helpful Hints

• Request lien statements in writing. Verify amounts before settlement.
• Negotiate reductions. Some providers accept less than the full billed amount.
• Obtain consent from lienholders when structuring your settlement.
• Settle subrogation claims early to avoid delays in distribution.
• Keep clear records of all notices, communications, and payments.
• Work with an attorney who understands lien law in Connecticut.