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Detailed Answer

In Washington, valid medical liens generally must be paid out of your personal injury settlement. Under the Hospital and Additional Health Care Provider Lien Act (RCW 7.70.040–7.70.160), hospitals and certain health care providers can file liens against any judgment or settlement you recover for personal injuries. Once a lien is properly recorded, it automatically attaches to your settlement proceeds. See RCW 7.70.060 for lien attachment details (RCW 7.70.060).

After you receive a settlement, you or your attorney must disburse funds to satisfy these liens before you keep any remaining money. RCW 7.70.080 outlines the procedure for calculating and enforcing lien amounts (RCW 7.70.080). If you fail to pay a valid lien, the provider can enforce it through court action, potentially leading to additional costs.

In addition, if Medicaid paid for your medical care, the state may seek reimbursement under the Medical Assistance Subrogation Act. RCW 74.09.610 requires the Department of Social and Health Services to recover conditional payments from your settlement (RCW 74.09.610).

Medicare also has a right to recover conditional payments under federal law, but those claims operate separately from state liens. You must notify Medicare of your settlement and ensure it’s reimbursed for any conditional payments made on your behalf.

While you generally must pay valid liens, you can negotiate reductions. Many hospitals and providers will accept less than the full billed amount to expedite payment. Your attorney can demand lien statements, verify charges, and negotiate lower balances before disbursement.

Helpful Hints

• Request detailed lien statements early to verify services and charges.
• Negotiate lien reductions—many providers will agree to a discount.
• Hold settlement funds in escrow until all liens and fees clear.
• Notify Medicare before settlement to avoid delay or penalties.
• Consult a personal injury attorney to handle lien compliance and negotiations.