Detailed Answer
When you recover damages in a Maryland personal injury case, any valid medical liens typically attach to your settlement or judgment. Medical liens allow hospitals, health care providers, and the Maryland Medical Assistance Program (Medicaid) to recover treatment costs from settlement proceeds before you receive funding.
Hospital and Health Care Provider Liens
The Maryland Hospital Lien Act grants hospitals a lien on a patient’s recovery if the hospital files written notice in the circuit court within six months of the patient’s discharge from the hospital Md. Health General Code § 19-301. The lien covers services and supplies provided to treat injuries caused by a third party. It attaches to any settlement or judgment against the at-fault party.
Medicaid Subrogation
If you receive Medicaid benefits for your injury, the Maryland Medical Assistance Program can assert a right to reimbursement from your settlement under the Health General Code. Medicaid must file a claim in the circuit court before distribution of proceeds Md. Health General Code § 15-104. This ensures the state recovers costs it paid on your behalf.
Settlement Distribution
Before your attorney distributes settlement funds, you must satisfy all valid medical liens. Maryland law requires that liens be paid in full from settlement or judgment proceeds. Unpaid liens can lead to legal claims against you and your attorney.
Negotiating and Reducing Liens
- Review all lien statements for accuracy
- Request itemized billing records if charges seem excessive
- Negotiate with providers—many will accept reduced payments to close out the lien
- Consider hiring a lien resolution specialist or asking your attorney for help
Key Takeaway
You must address medical liens before receiving settlement funds in Maryland. Work with your attorney to identify, validate, and negotiate liens to maximize your recovery.
Disclaimer This article is for educational purposes only and does not constitute legal advice. Consult a qualified Maryland attorney to address your specific legal situation.
Helpful Hints
- Obtain lien letters early to spot potential issues
- Confirm providers filed timely lien notices under the Hospital Lien Act
- Check whether any health insurance or government benefits provider has repayment rights
- Prioritize lien resolution in your settlement timetable
- Keep detailed records of all communications with lienholders