When you settle a personal injury or accident claim in Louisiana, medical bills and liens can significantly reduce your net recovery. This article explains how Louisiana law treats medical liens, outlines steps to address outstanding bills, and offers negotiation strategies.
Disclaimer: This information is not legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
1. Identify All Outstanding Medical Bills and Liens
Begin by requesting itemized bills from each provider. Hospitals, doctors and therapists often file liens under Louisiana Revised Statutes § 40:1299.96. These liens attach to any settlement, judgment or award related to your injury. Pharmacy and ambulance services may also file under Louisiana Revised Statutes § 37:1737. Additionally, if you received Medicaid or Medicare payments, state and federal subrogation rights may apply (La. R.S. 46:2136 for Medicaid; 42 U.S.C. § 1395y(b) for Medicare).
2. Verify Lien Validity and Priority
Under La. R.S. 40:1299.96, a hospital lien must be filed in the parish where treatment occurred and served on the claimholder or insurer. Check that each lien was timely filed and properly served. Louisiana law gives hospital liens priority over other unsecured creditors, but priority disputes can arise if multiple providers claim liens.
3. Negotiate Reductions or Payoff Arrangements
Liens often list full billed amounts, not the negotiated or Medicare rates. You can negotiate directly with providers to reduce balances. Common tactics include:
- Requesting a copy of any third-party payor rates (Medicare, Medicaid).
- Proposing a lump-sum payoff of 30–50% of the billed amount.
- Offering timely payment and release in exchange for reduction.
4. Structure Settlement to Satisfy All Liens
Your settlement agreement should itemize lien payments. You can ask the insurer or opposing counsel to issue separate checks: one for you and ones payable to lienholders. Include an escrow clause for unresolved claims until you obtain lien releases.
5. Obtain Written Lien Releases Before Disbursing Funds
Always secure a written lien release or satisfaction document from each provider. Without this release, they may pursue you even after settlement. If a provider refuses to release despite payment, you may petition the court to enforce lien statutes.
Helpful Hints
- Compile all medical records early to spot unbilled services.
- Track deadlines for filing or contesting liens under Louisiana statutes.
- Consider hiring a medical bill review company to identify billing errors.
- Document every negotiation in writing—emails count as evidence.
- Work with an attorney or mediator familiar with lien statutes to protect your net recovery.