Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
When you resolve a personal injury claim in Nevada, several parties may assert liens against your settlement to recover medical expenses, insurance payments or other obligations. Understanding these liens helps you plan for net recovery and ensure compliance with state and federal law.
1. Hospital and Health Care Provider Liens
Nevada law grants hospitals and certain health care providers a lien on any judgment or settlement arising from injuries for which they rendered services. Under NRS 108.225–108.245, a hospital must record and serve a written notice of lien within 30 days after the patient’s discharge. Once perfected, the lien attaches to your settlement up to the amount owed.
See NRS 108.225: https://www.leg.state.nv.us/NRS/NRS-108.html#NRS108Sec225.
2. Health Insurance and ERISA Plan Liens
If your private health insurer or employee benefit plan paid for medical care, it may seek reimbursement from your settlement. Many plans include “subrogation” clauses or recovery rights under the Employee Retirement Income Security Act (ERISA). Federal law (29 U.S.C. §1132) and plan documents govern the process. You must review your insurance policy or summary plan description to determine your obligations.
3. Medicare and Medicaid Liens
– Medicare: The Centers for Medicare & Medicaid Services (CMS) automatically sets a Medicare Secondary Payer lien when Medicare covers your medical costs. CMS issues a “Medicare Part C & D Lien Letter” or “CMS Demand Letter” to recover conditional payments. You must resolve or contest this lien before distribution of settlement proceeds.
– Medicaid: Nevada Medicaid has a right to reimbursement for medical costs under 42 U.S.C. §1396k. The Division of Welfare and Supportive Services may file a claim against your settlement. Federal regulations (42 C.F.R. §433.137) outline notice and appeal procedures.
4. Child Support and Victim Restitution Liens
If you owe child support, the Division of Welfare and Supportive Services may assert a lien against your personal injury recovery. Under NRS 125B.080, an unpaid support arrearage automatically creates a lien on judgments and settlements.
See NRS 125B.080: https://www.leg.state.nv.us/NRS/NRS-125B.html#NRS125BSec080.
Victim restitution orders in criminal cases also yield liens and must be satisfied before you receive your net settlement.
5. Attorney Charging and Retaining Liens
Nevada law recognizes an attorney’s charging lien on a client’s judgment or settlement to secure unpaid fees and costs. Although not codified in a single statute, this common-law lien requires that your lawyer file a written notice with the court or opposing counsel. The fee agreement and Nevada Rules of Professional Conduct (Rule 1.5) govern the amount and enforcement.
Helpful Hints
- Obtain lien statements early. Request itemized statements from all potential lienholders soon after your case resolves.
- Review your insurance policy. Understand subrogation clauses and deadlines to contest claims.
- Communicate with CMS and Medicaid. Timely negotiate or dispute federal liens to avoid delays.
- Set aside funds in trust. Use an interpleader or escrow account to hold disputed lien amounts until resolution.
- Keep detailed records. Documentation of payments and communications helps resolve disputes efficiently.