Disclaimer: This article is for informational purposes and does not constitute legal advice. Consult a qualified attorney to discuss your situation.
Detailed Answer
Medical and Hospital Liens Under Indiana Law
Under Indiana law, medical providers can file a lien against your personal injury claim under the Medical and Hospital Lien Act (IC 32-32-6). To be valid, a provider must file a verified application within 90 days of first providing care (IC 32-32-6-4). A valid lien attaches directly to any judgment or settlement you obtain. You generally must satisfy or negotiate these liens from your settlement proceeds before you receive your share. Failing to address a valid lien can subject you or your attorney to enforcement actions or interest charges.
Limits on Lien Amounts
Liens cannot exceed the lesser of the provider’s billed charges or amounts set by Indiana’s Medical Fee Schedule under Indiana Code § 34-51-2-11 (IC 34-51-2-11). This rule protects you from inflated medical bills.
Insurer and Medicaid Subrogation
If an insurer paid your medical expenses, it may assert subrogation rights against your recovery. Employer-sponsored plans subject to ERISA can enforce subrogation. Additionally, Medicaid may seek repayment from your settlement under Indiana Code § 12-15-2-4.1 (IC 12-15-2-4.1).
Resolving Lien Disputes
You can negotiate lien amounts with medical providers or challenge them in court. Include lien resolution in settlement negotiations to avoid delays. Always review lien statements carefully and raise disputes promptly.
Helpful Hints
- Confirm providers filed liens within 90 days per IC 32-32-6-4.
- Review the Indiana Medical Fee Schedule (IC 34-51-2-11).
- Keep detailed records of medical bills and payments.
- Negotiate or dispute excessive lien amounts early.
- Discuss subrogation issues with your attorney during settlement talks.
- Ensure all valid liens are addressed before disbursing settlement funds.