Detailed Answer
In Indiana, health care providers may assert a lien on personal injury recoveries to secure payment for medical services. These liens follow rules under Indiana Code (IC) Title 34, Article 51.
Step 1: Confirm the Lien’s Validity
IC 34-51-1-1 allows providers to file liens for charges related to medical, hospital, and professional services. To be valid, the lien must arise from care for injuries caused by another party’s negligence. Providers cannot claim liens on unrelated treatments. IC 34-51-1-1.
Step 2: Serve and File the Lien Notice
Per IC 34-51-2-1, the lienholder must mail a written notice to the injured party (and counsel) within 30 days of the last treatment date. The notice must specify the amount claimed. Providers typically file a copy with the court where the personal injury claim is pending. IC 34-51-2-1.
Step 3: Provide an Accounting
Within 30 days after notice, the provider must send the injured party and counsel an itemized statement of medical charges. This statement must include service dates, individual charges, and any payments received.
Step 4: Negotiate, Discount, or Challenge
Plaintiffs often negotiate lien reductions. Some insurers or assistance programs cap rates at Medicare or Medicaid levels. If the parties cannot agree, the court may reduce an unreasonable lien under IC 34-51-1-2. IC 34-51-1-2.
Step 5: Pay Liens at Settlement
Before court approval of the settlement or judgment, plaintiffs (or their attorneys) must pay valid liens. Courts may hold settlement funds in escrow to ensure full lien satisfaction. After payment, providers release the lien.
Helpful Hints
- Document all medical bills and communications with providers.
- Track the 30-day deadlines for filing notices and providing accountings.
- Consider lien-resolution services to negotiate lower balances.
- Request a lien waiver once the provider agrees to accept payment.
- Keep settlement funds in escrow until all liens clear.
- Consult a personal injury attorney to oversee lien compliance.
Disclaimer: This article provides general information under Indiana law. It does not constitute legal advice. Consult a qualified attorney for advice tailored to your situation.