Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney before making decisions regarding your personal injury settlement or negotiating liens.
Detailed Answer
In Minnesota, health care providers—including physicians and surgeons—can file liens against any tort recovery you receive for injuries they treat. Under Minn. Stat. § 514.01, a valid lien may attach to your settlement, judgment or award. However, you can often negotiate these liens downward to preserve more of your net recovery.
1. Understand the Lien’s Basis and Amount
Liens generally reflect the provider’s billed charges, not the lower amounts an insurer or government program would pay. Review the lien statement carefully. It should identify:
- The services performed and their dates
- The total billed amount
- Any payments already received
2. Use Comparative Negotiation Strategies
Insurance companies and Medicare use fee schedules or usual-and-customary rates that are often lower than a provider’s billed charges. You can leverage those rates to argue a reasonable reduction:
- Present evidence of Medicare or private-insurer fee schedules for identical services.
- Highlight any discounts already negotiated by insurers on similar cases.
3. Engage Your Attorney Early
An experienced personal injury attorney can:
- Communicate directly with your medical provider or their attorney.
- Obtain supporting documentation showing customary reductions.
- Structure settlement proceeds to allocate funds for reduced liens first.
4. Negotiate a Global Reduction or Cap
Providers often agree to a percentage reduction or a fixed cap in exchange for prompt payment. For example, they may accept 40–60% of the billed charges. Document any agreement in writing to avoid disputes later.
5. Seek Court Approval if Necessary
If the provider refuses a reasonable reduction, your attorney can ask the court to determine whether the lien is excessive based on Minnesota’s common-law reasonableness standard. Courts may reduce liens deemed unreasonably high.
Helpful Hints
- Gather all medical bills and lien statements before settlement negotiations begin.
- Compare billed amounts to state fee schedules or insurer-negotiated rates.
- Keep communication in writing to document all reduction offers and acceptances.
- Ask your attorney to obtain a lien waiver or release upon payment.
- Be aware of Minnesota’s statute of limitations: providers must file liens timely under Minn. Stat. § 514.01.
- Consider setting aside settlement funds in escrow to satisfy negotiated liens quickly.