Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific situation.
Detailed Answer
Understanding Medical Liens in Michigan
Under Michigan law, certain health care providers can file a lien on any settlement or judgment you obtain in a personal injury case. The Michigan Hospital Lien Act (MCL 333.20101–333.20121) governs most hospital liens. For non‐hospital providers, your no‐fault insurer may have paid bills under MCL 500.3112 and holds a right of reimbursement.
Key Statutes
- MCL 333.20107 – Filing and notice requirements for hospital liens.
- MCL 500.3112 – Provider itemized billing under Michigan No‐Fault Act.
Step 1: Identify All Providers and Insurers
List every medical facility, doctor, therapist and your auto no-fault insurer. Obtain itemized bills and proof of payment or benefits paid.
Step 2: Confirm Liens and Reimbursement Claims
Review lien notices filed with the county clerk’s office. Verify that each lien complies with MCL 333.20107 by checking the date, provider name, patient name and description of services.
Step 3: Request Payoff Statements
Ask each lienholder for a payoff statement that breaks down the total amount due, including interest. For no‐fault reimbursements, request a reimbursement statement from your insurer under MCL 500.3112.
Step 4: Negotiate Reductions
Many providers will accept a reduced lump‐sum payment to release their lien. Negotiate based on the strength of your case, outstanding balance history and timing of your settlement.
Step 5: Hold Funds in Escrow
Before finalizing your settlement or judgment, instruct your attorney or escrow agent to hold enough funds to pay all valid liens and reimbursement claims.
Step 6: Obtain Lien Releases
After payment, secure a written lien release from each provider and insurer. Verify that the release explicitly states “lien fully satisfied.” This prevents future claims against your recovery.
Helpful Hints
- Start the lien identification process early to avoid last-minute delays.
- Keep detailed records: dates of service, bills, payments and correspondence.
- Consider a lien resolution company if you have multiple providers.
- Always demand a formal payoff and release before disbursing settlement funds.
- If a provider refuses to negotiate, review the reasonableness of charges under MCL 333.20107(4).
- Consult an attorney experienced in Michigan personal injury and medical lien law.