Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
If you received medical treatment after an injury in Michigan, health care providers often secure a lien against any third-party tort recovery you obtain. Under Michigan’s No-Fault Act, MCL 500.3148, a provider can file a lien to ensure payment from your personal injury settlement.
Key Elements of a Michigan Medical Lien
- Who can file: Licensed health care providers and authorized insurers that paid medical expenses.
- When to file: Within 180 days of the last treatment date or denial of benefits.
- Notice requirement: Providers must send a certified-mail notice to you or your attorney detailing the lien amount.
- Scope of lien: It attaches only to your net settlement—what remains after attorney fees and case costs.
Obligation to Pay
Yes. When you settle a claim against a negligent party, you must satisfy valid medical liens from the recovery. Michigan law limits the provider to the amount you actually receive after legal fees. You cannot avoid a properly perfected lien simply by negotiating a lower global settlement.
Negotiating or Reducing Lien Amounts
Common strategies include:
- Requesting lien reductions—many providers agree to a percentage of billed charges.
- Challenging duplicate or unrelated charges.
- Working with your attorney to allocate settlement proceeds fairly between medical bills and other damages.
Enforcement and Consequences of Nonpayment
- If you ignore a lien, the provider may petition the circuit court to enforce it.
- The court can enter a judgment against the settlement proceeds or hold you in contempt for violating the lien statute.
- Unpaid liens can impair future credit or lead to collection actions against your settlement funds.
Helpful Hints
- Review all lien notices immediately upon receipt.
- Keep detailed records of medical bills and correspondence.
- Ask your attorney to verify the lien’s validity and timeliness under MCL 500.3148.
- Negotiate reductions—many providers accept 40–60% of the billed amount.
- Factor lien payments into your overall settlement demands.
- Consult an attorney with experience in Michigan personal injury subrogation and lien law.