Disclaimer: This content does not constitute legal advice. Consult a qualified attorney in Maryland for advice specific to your situation.
Detailed Answer
When you sustain injuries in Maryland and a healthcare provider places a medical lien on your personal injury settlement, you can take steps to negotiate down the lien amount and maximize your net recovery. Under Maryland law, hospital liens arise by operation of statute. See Maryland Health–General § 19-712.5. The following strategies can help you reduce lien obligations and boost your settlement proceeds.
1. Review Lien Validity and Amount
First, confirm that the lien is properly recorded. Maryland requires a hospital or provider to file a written lien notice with the clerk of the local circuit court within 180 days of providing care. If the provider misses this deadline or fails to detail the services and charges, you may challenge the lien’s validity. Additionally, request an itemized bill to verify each service and charge. Common errors include duplicate billing, charges for unrelated care, or inflated rates.
2. Leverage Comparative Negligence and Causation Disputes
If the opposing party disputes liability or contends you share fault, they may also dispute certain medical treatments. Use these arguments to negotiate a lower lien. Highlight treatments that arguably lack a direct nexus to the accident to reduce the recoverable amount. Maryland follows comparative negligence rules. See Md. Courts & Judicial Proceedings § 3-2A-01.
3. Negotiate a Percentage Reduction
Healthcare providers often accept a reduced percentage of the billed amount rather than a protracted legal dispute. Typical reductions range from 30% to 60%, depending on the lien size and probability of collection. Propose a lump-sum payment equal to a reasonable portion of the lien. Support your offer with market rate data and the risk of litigation.
4. Use Medicaid and Private Insurance Subrogation Rules
If you received Medicaid or private insurance benefits, the state and insurers may assert subrogation liens under Md. Insurance § 19-704 or federal Medicaid rules. Challenge subrogation claims by ensuring that you retain reasonable attorney’s fees and costs. Offer to pay the statutory minimum or a negotiated share of net recovery.
5. Engage Counsel Experienced in Lien Resolution
Hiring an attorney familiar with Maryland’s lien statutes can significantly improve your negotiating position. Counsel can prepare formal offers, draft stipulations for court approval, and, if needed, represent you in hearing before the circuit court.
Helpful Hints
- Document all communications with lienholders in writing.
- Obtain itemized medical bills and verify each charge.
- Consider engaging a medical billing advocate to audit charges.
- Explore mediation before filing a lien challenge in court.
- Understand Maryland’s hospital lien deadlines and notice requirements.
- Keep track of your total settlement versus your expected net after liens.