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Before you finalize a personal injury settlement in Minnesota, you must satisfy all medical bill liens. Medical providers and payers secure repayment through hospital liens, Medical Assistance liens, Medicare conditional payment demands, and private-insurer subrogation rights. Follow these steps to ensure a clean distribution of your recovery:

1. Identify potential liens
   • Hospital and provider liens: Under the Minnesota Hospital Lien Act, hospitals may file liens against your injury claim. See Minn. Stat. § 325E.32.
   • Medical Assistance (Medicaid): The state holds a lien on any personal injury recovery to recoup medical assistance benefits. See Minn. Stat. § 256B.059, subd. 9.
   • Medicare: Federal law requires repayment of any conditional payments. Request a conditional payment letter from CMS.
   • Private health insurers: Many policies include subrogation or reimbursement clauses.
2. Request lien statements and verification
   • Send each hospital and provider a written request for a detailed statement of charges and lien amounts.
   • Request a statement of Medical Assistance benefits paid to date from the Minnesota Department of Human Services under Minn. Stat. § 256B.059.
   • Contact the Medicare Secondary Payer Recovery Contractor for a conditional payment notice.
   • Notify your private insurer and obtain a subrogation statement.
3. Review and negotiate
   • Compare each lien statement against your billing records.
   • Negotiate reductions—providers often accept discounted payoffs in exchange for prompt payment.
   • Keep written records of all communications.
4. Place funds in escrow

   Deposit your settlement proceeds in a trust or escrow account while you verify and negotiate each lien. This step ensures funds remain available to satisfy liens and protects all parties.

5. Satisfy liens and secure releases
   • Pay each verified lien from the escrow account.
   • Obtain a lien waiver or release letter from each hospital, the Department of Human Services, and Medicare.
   • Get a subrogation release from your private insurer, if applicable.
6. Finalize distribution

   After all liens and reimbursement demands are satisfied and you hold written releases, distribute the remaining settlement proceeds according to your agreement.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.

Helpful Hints

• Start lien verification early—statute deadlines can expire quickly.
• Use certified mail when requesting lien statements to establish proof of notice.
• Keep precise records of all payoff calculations and negotiations.
• Engage a legal or financial professional to hold funds in escrow.
• Double-check that you receive a written release for every lien before disbursing funds.