Detailed Answer

Under Massachusetts law, you generally must pay valid medical liens from your personal injury settlement before you receive any funds. Two types of liens commonly arise: statutory hospital or health care provider liens and health insurance subrogation claims. Each follows specific rules under Massachusetts General Laws.

1. Hospital and Health Care Provider Liens

Massachusetts grants hospitals and certain health care providers a statutory lien on any personal injury settlement for services they rendered.

Statute and Timing

The relevant statute is M.G.L. c. 231, § 60C. To preserve a lien, a hospital or provider must file notice in the county where treatment occurred within 60 days of the patient’s last treatment.

Amount and Priority

The lien amount cannot exceed 125% of the billed charges, and it takes priority over other claims except earlier statutory liens. After medical liens, your attorney’s fee and costs attach, then you receive the balance.

2. Health Insurance Subrogation Claims

If a private insurer or managed‐care plan paid your medical bills, it may have a contractual right to recover from your settlement. Unlike statutory liens, subrogation rights depend on your insurance contract and federal ERISA rules. Review your plan documents for reimbursement provisions.

3. Consequences of Non-Payment

If you fail to pay a valid lien, the provider can file a lawsuit to enforce it. A court may order you to pay directly from settlement funds. Failing to resolve liens can also delay distribution of your settlement.

4. How to Handle Medical Liens

1. Obtain written lien statements from each provider.
2. Confirm the provider filed its lien on time under M.G.L. c. 231, § 60C.
3. Review insurance plan documents for subrogation clauses.
4. Negotiate lien reductions—many providers accept less than billed amounts.
5. Allocate settlement funds in escrow until liens resolve.
6. Obtain court approval if required by your settlement agreement.

Disclaimer: This article provides general information about Massachusetts law. It is not legal advice and does not create an attorney-client relationship. Consult a qualified attorney for advice about your situation.

Helpful Hints

• Track all medical bills, lien notices, and deadlines closely.
• Keep copies of your insurance policy and subrogation language.
• Ask your attorney for court approval to hold funds in escrow.
• Be proactive: negotiate sooner to reduce lien amounts.
• Confirm satisfaction of liens before final settlement disbursement.