Detailed Answer
If you receive a personal injury settlement in Montana, you generally must satisfy any valid medical liens before you can keep the net proceeds. Under Montana law, health care providers and hospitals that treat you after an injury may file a lien against any judgment or settlement you recover. These liens secure payment for reasonable charges they incurred on your behalf.
Montana Code Annotated § 72-2-121 allows hospitals and licensed providers to record a lien by filing a notice with the county clerk within six months of your last treatment. Once properly filed, the lien attaches to any settlement or judgment resulting from the injury. You must pay the lienholder directly out of your gross recovery, after attorney fees and litigation costs but before you take your share.
Key steps under MCA § 72-2-121 include:
- Filing deadline: The provider must file within six months of your last billed service.
- Notice content: The notice must specify the patient’s name, provider’s name and address, date of service, and amount claimed.
- Enforcement: Once notice is recorded in the county where you reside or where treatment occurred, the lien binds the settlement.
Providers often negotiate lien amounts. Montana courts allow you or your attorney to challenge an unreasonable lien by requesting a hearing under MCA § 72-2-124. If the lien exceeds what a private payor would have charged or if the provider failed to comply with notice rules, a judge may reduce or invalidate the lien.
Medicare and Medicaid liens follow federal rules. If you receive benefits for your injury, the Centers for Medicare & Medicaid Services has its own recovery process. You must report your settlement to CMS and negotiate or resolve the lien under the Medicare Secondary Payer Act.
Because liens affect your final recovery, work with your personal injury attorney to:
- Obtain and review all lien notices early in settlement negotiations.
- Confirm each lien’s filing date, amount, and compliance with MCA § 72-2-121.
- Negotiate reductions for statutory caps or equitable adjustment.
Disclaimer: This article is for informational purposes and does not constitute legal advice. Always consult a qualified attorney licensed in Montana regarding your specific situation.
Helpful Hints
- Request a lien summary from each medical provider before settlement.
- Ask your attorney to verify that all liens comply with Montana’s six-month filing rule.
- Explore lien negotiations—many providers accept less than billed charges.
- Keep detailed records of medical bills, payments, and lien notices.
- Report any Medicare or Medicaid payments to CMS to avoid future clawbacks.