Disclaimer: This article provides general information under Nebraska law. It does not constitute legal advice. Consult an attorney for advice specific to your situation.
Detailed Answer
If you recover a personal injury settlement in Nebraska, you generally must satisfy valid medical liens before you receive your award. Medical liens give certain providers a legal right to be paid from your settlement proceeds. Failing to address these liens can lead to lawsuits, additional costs, or forfeited recovery.
1. Nebraska Hospital Lien Act
Under the Nebraska Hospital Lien Act (Neb. Rev. Stat. § 44-536), hospitals and related facilities can file a lien against any settlement you obtain for injuries treated at their facility. To be enforceable, the hospital must:
- Provide you with written notice of the lien.
- File the lien with the county clerk within 90 days after your last treatment. Neb. Rev. Stat. § 44-536.
- Serve notice on all known claimants or their attorneys.
2. Other Medical Provider Claims
Private doctors, therapists, and non-hospital providers do not benefit from a specific Nebraska lien statute. They may still seek payment by:
- Asserting an assignment of your rights against the third party.
- Filing suit against you on breach of contract or quantum meruit.
3. Medicaid and Medicare Subrogation
If Medicaid or Medicare pays your medical bills, federal law gives these programs a right to recover from your settlement under 42 U.S.C. § 1395y(b)(2). You must:
- Notify the Centers for Medicare & Medicaid Services (CMS).
- Obtain a final demand letter showing the amount due. 42 U.S.C. § 1395y(b)(2).
4. Settlement Disbursement Process
Your attorney or claims adjuster typically handles lien payments. After deducting attorney fees and costs, remaining funds go to satisfy valid liens in this order:
- Statutory hospital liens.
- Medicaid/Medicare subrogation claims.
- Other medical providers by agreement or court order.
Helpful Hints
- Review all lien notices promptly. Missing a deadline can invalidate the lien.
- Obtain a demand statement from each lienholder before settlement.
- Negotiate lien amounts where possible; some providers reduce liens to expedite payment.
- Work with counsel experienced in Nebraska personal injury and lien law.
- Keep clear records of payments to avoid duplicate billing.
- Check for health insurer subrogation or workers’ compensation liens if applicable.