What Types of Liens Commonly Apply to a Personal Injury Settlement in Maine?

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

Detailed Answer

When you recover a personal injury settlement in Maine, various liens can reduce your net recovery. Liens represent legal claims by third parties—such as hospitals, insurers or government programs—that paid your medical bills or benefits. Understanding these liens helps you negotiate a fair settlement.

1. Hospital and Medical Provider Liens

Under the Maine Hospital Lien Act, 14 M.R.S. §156, hospitals and certain medical providers may file a lien against your settlement for treatment related to your injury. To enforce the lien, the provider must record a notice within 60 days after your last treatment. You can view the statute here: 14 M.R.S. §156.

2. MaineCare Reimbursement Liens

If MaineCare (the state Medicaid program) covers your medical expenses, it has a right to reimbursement from your settlement under 22 M.R.S. §3174. The Department of Health and Human Services files a lien and must notify you before recovery. See the full text at 22 M.R.S. §3174.

3. Workers’ Compensation Subrogation Claims

If you receive workers’ compensation benefits for a work-related injury, your employer or insurer can pursue subrogation to recoup those benefits from your third-party recovery. Maine’s workers’ compensation statute, 39-A M.R.S. §221, governs this lien. Details are available here: 39-A M.R.S. §221.

4. Federal Medicare Liens

Medicare often pays your medical bills upfront and then seeks repayment from any settlement under the Medicare Secondary Payer Act (42 U.S.C. §1395y(b)). You must report your settlement and satisfy Medicare’s conditional payment demands.

5. Attorney’s Charging and Common Fund Liens

Maine courts recognize an attorney’s charging lien on the client’s recovery for unpaid fees and costs. When an attorney’s work produces a recoverable fund, the attorney may assert a common fund lien to ensure payment of fees.

6. Tax and Child Support Liens

Federal and state tax liens can attach to your settlement if you owe back taxes. Similarly, child support enforcement agencies may file liens or garnishments to collect past-due support.

Paying off liens correctly helps avoid disputes and ensures a clear title to your recovery. Always verify lien amounts, challenge unreasonable claims, and include accurate lien deductions in your settlement negotiations.

Helpful Hints

  • Obtain lien statements in writing to confirm amounts and deadlines.
  • Negotiate medical provider liens; many will accept reduced pay-offs.
  • Alert Medicare and MaineCare early to avoid interest and penalties.
  • Review your settlement agreement to confirm all liens are satisfied.
  • Consult with an attorney to allocate funds and handle lien disputes.

Disclaimer: This article provides general information under Maine law and does not constitute legal advice. Always consult a qualified attorney for guidance on your specific situation.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.