Disclaimer: This article is for educational purposes and does not constitute legal advice. Always consult a qualified attorney for advice on your specific case.
Detailed Answer
Understanding Medical Liens Under Maine Law
In Maine, hospitals and medical providers may assert liens against personal injury settlements to secure payment for treatment. Under Maine Revised Statutes Title 14, Section 405, a hospital that treats an injured person can file a lien within 90 days of discharge. The lien attaches to any recovery you obtain from the responsible party.
Identifying and Quantifying Outstanding Bills
1. Obtain an itemized billing statement from each provider.
2. Verify that the services relate to your injury.
3. Confirm lien priority—hospital liens generally take precedence over other creditors.
4. Watch for subrogation claims by health insurers (including Medicare, Medicaid, or private plans). They may seek reimbursement for benefits paid on your behalf.
Negotiating with Lienholders
Once you know the total lien amount, you can begin negotiations:
- Request a reduction: Many providers will accept a lesser amount to resolve the debt quickly.
- Settle with insurers: Health plans often have formal subrogation departments. Submit a settlement offer in writing.
- Use lien resolution agreements: Draft a written agreement that specifies amount due, payment timing, and release of lien upon payment.
Factoring Liens into Your Settlement Agreement
Your settlement agreement or release should address liens explicitly. Typical approaches include:
- Holdback or escrow: Retain sufficient funds from your gross settlement to cover liens, attorney fees, and costs.
- Joint payment: Issue settlement checks directly to lienholders and your attorney to avoid misdirection of funds.
- Order of disbursement: Prioritize lien payment per court rules or statutory priority.
By addressing liens in the agreement, you protect yourself from future enforcement actions and ensure clear title to your recovery funds.
Helpful Hints
- Compile all medical records and bills early to spot liens as soon as possible.
- Maintain detailed records of correspondence with medical providers and insurers.
- Consider involving a lien resolution specialist or attorney familiar with Maine hospital lien statutes.
- Be proactive: late-filed liens can disrupt closing of your settlement.
- Always verify that each lienholder provides a written release upon payment.