Disclaimer: This article provides general information and does not constitute legal advice. Consult an attorney to discuss your situation.
Detailed Answer
When you resolve a personal injury claim in Massachusetts, various parties may have liens on your settlement. Understanding these liens helps you plan and negotiate your award. The most common liens include:
1. Hospital Liens
Under Massachusetts General Laws chapter 175, section 47, a hospital may file a lien to secure payment for medical services. To be valid, the hospital must record the lien in the registry of deeds where the injured party lives. See statute: M.G.L. c.175, §47.
2. Health Insurer Subrogation and ERISA Liens
Private insurers and ERISA plans often pay for medical care with the right to recover those costs from any third-party recovery. While no specific Massachusetts statute governs subrogation, plans rely on contract language and federal ERISA law (29 U.S.C. §1132). Negotiation is key to reduce subrogation demands.
3. MassHealth (Medicaid) Liens
MassHealth can claim reimbursement from settlements under M.G.L. c.118E, §24(b). The Department of Public Health and Human Services issues a lien notice on approved cases. For details: M.G.L. c.118E, §24.
4. Medicare Liens
Medicare has a statutory lien under federal law, 42 U.S.C. §1395y(b). It seeks repayment for benefits paid due to the injury. The Centers for Medicare & Medicaid Services issues a “demand letter” outlining the lien amount.
5. Attorneys’ Charging Liens
Under Massachusetts case law, your lawyer may assert an equitable lien on your recovery to secure unpaid attorney’s fees and costs. This lien arises automatically upon representation and applies to the net settlement.
6. Child Support and Alimony Liens
If you owe child support or alimony, the Commonwealth can attach a lien to your personal property, including settlement proceeds, under M.G.L. c.206, §37. More: M.G.L. c.206, §37.
Helpful Hints
- Review all medical bills and payment records before settlement.
- Ask insurers for detailed subrogation statements.
- Negotiate lien reductions when possible.
- Obtain written lien waivers from providers after payment.
- Allocate settlement funds clearly to avoid disputes.
- Consult an attorney experienced in lien resolution early.