Disclaimer: This article is for general information only and does not constitute legal advice. Always consult a qualified attorney for advice on your specific situation.
Understanding Medical Liens Under Nebraska Law
In Nebraska, medical providers can file liens on personal injury settlements or judgments to secure payment for treatment. The Nebraska Hospital Lien Act (Neb. Rev. Stat. § 44-510 et seq.) outlines the requirements for valid liens. A hospital or health care facility must record its lien with the county clerk where treatment occurred to preserve its right to payment.
Core Strategies to Negotiate Down Medical Liens
1. Obtain and Review Lien Documentation
Request a detailed, itemized statement of all billed services, dates, and charges. Verify that each charge matches the medical records. Under Neb. Rev. Stat. § 44-512 (Hospital Liens Priority), liens attach only to amounts reasonably charged.
2. Challenge Unreasonable or Duplicate Charges
Compare billed rates to usual and customary fees in Nebraska. Seek adjustments for outdated billing codes or duplicate services. Providers often reduce excessive charges during settlement to avoid litigation over billing practices.
3. Leverage Statutory Deadlines and Technical Defenses
Confirm the lien was filed within 60 days after written demand, as required by Neb. Rev. Stat. § 44-515. A late or improperly recorded lien may be invalid. Use these defenses to negotiate a lower payoff.
4. Negotiate a Percentage of the Lien
Offer a lump-sum payment equal to a percentage of the total billed amount. Providers frequently accept 30 –50% to avoid collection costs and the risk of nonpayment.
5. Bundle Multiple Liens for Bulk Settlement
If you face liens from several providers, propose a global settlement. Consolidated negotiations can yield a deeper overall discount, as providers prefer a single streamlined transaction.
6. Use Mediation or Arbitration Clauses
Some lienholders include binding dispute-resolution clauses in their billing agreements. Initiating mediation can pressure providers to reduce liens rather than incur additional fees.
7. Coordinate With Health Insurers and Subrogated Carriers
Health insurers may have subrogation rights. Identify payers and negotiate their liens under the same strategy. A unified approach maximizes overall recovery.
Maximizing Your Net Recovery
After negotiating lien reductions, calculate your net settlement: Total Settlement – (Attorney Fees + Reduced Liens + Case Expenses). Focus on strategies that lower liens without increasing your attorney fees or case costs.
Helpful Hints
- Document every communication in writing and keep thorough records.
- Consult a personal injury attorney early to leverage their negotiation expertise.
- Gather comparable fee schedules from other Nebraska providers.
- Be prepared to walk away if a lienholder refuses to negotiate.
- Understand your attorney’s fee agreement to ensure percentage fees align with lien reductions.
For more details on lien requirements and procedures, review the Nebraska Hospital Lien Act: Neb. Rev. Stat. § 44-510 et seq.