Disclaimer: This article is for informational purposes and does not constitute legal advice.
Detailed Answer
In Missouri, personal injury settlements often carry liens—legal claims—by various parties seeking reimbursement. Understanding these liens helps you negotiate a fair net recovery.
1. Medical Provider and Hospital Liens
Under Missouri’s Hospital Lien Law (RSMo 443.300–443.345), a hospital or health care provider can file a lien against your personal injury recovery for services related to the injury. To enforce the lien, the provider must send a written notice to you or your attorney before or within 60 days after treatment. See RSMo 443.303: https://revisor.mo.gov/main/OneSection.aspx?section=443.303.
2. Health Insurer Subrogation and ERISA Liens
If your private health plan paid for treatment, the insurer may seek subrogation to recover costs from your settlement. Many employer-sponsored plans are governed by ERISA (29 U.S.C. §1001 et seq.), which often grants broad reimbursement rights. Plans typically require you to notify them of a settlement and may assert a lien or demand repayment of medical expenses they covered.
3. Medicare and Medicaid Liens
If you receive Medicare or Medicaid benefits, federal law gives the government a right to recover conditional payments from any third-party settlement, judgment, or award. For Medicare, see 42 U.S.C. §1395y(b)(2)(B)(ii). For Medicaid, see 42 U.S.C. §1396k. Failure to satisfy these liens can jeopardize your future eligibility for benefits.
4. Attorney’s Charging Lien
Missouri recognizes a common-law charging lien for attorneys on settlements they secure under a contingency agreement. Your lawyer can assert a lien for unpaid fees and expenses directly against the recovery until their billing is resolved.
5. Government and Child Support Liens
The Missouri Family Support Division or other state agencies can place liens on your settlement to collect unpaid child support or public assistance. Federal tax liens can also attach if the IRS has assessed a liability against you.
Helpful Hints
- Gather all medical bills and lien notices early to estimate potential deductions.
- Notify health insurers and government benefit programs as soon as you file your claim.
- Review your fee agreement for how attorney’s fees and costs are deducted.
- Negotiate with lienholders—Missouri courts sometimes approve reduced lien amounts.
- Keep documentation of all payments to ensure liens are properly satisfied in closing documents.
- Ask your attorney to obtain lien waivers or releases from each provider before finalizing the settlement.
- Check for pending child support or tax liens by contacting relevant state or federal agencies.