Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer: Medical Liens and Your Personal Injury Settlement in Minnesota
When you settle a personal injury claim, Minnesota law generally requires you to satisfy outstanding medical liens before distributing the remaining funds. A medical lien gives a health care provider or hospital a legal claim against the settlement proceeds to cover treatment costs. In Minnesota, two primary statutes govern these liens:
- Minn. Stat. § 62A.091 – Hospital liens for emergency and inpatient services.
- Minn. Stat. § 514.02 – Liens for other health care providers.
Under § 62A.091, a hospital that provided emergency or inpatient care after an injury can file a lien against third-party recoveries. Similarly, non-hospital providers such as clinics or therapists may assert liens under § 514.02. Both types of liens attach to any settlement, judgment, or award you receive for your injury.
Example Scenario:
- You sustain injuries in a car crash and incur $20,000 of hospital charges and $5,000 in physical therapy bills.
- You negotiate a $50,000 settlement with the at-fault driver’s insurer.
- Minnesota law requires you to pay the $20,000 hospital lien and the $5,000 provider lien from your settlement, leaving you with $25,000.
Key Points:
- You must give written notice to lienholders and the insurer or opposing party. For hospitals, this notice typically includes a copy of the lien filed under § 62A.091.
- Liens take priority over your personal claims if properly filed and served.
- If you negotiate lien reductions or payment plans, document all agreements in writing.
Helpful Hints
- Review lien statements carefully to confirm accuracy of dates, charges, and provider names.
- Consult your personal injury attorney early to address lien issues before final settlement.
- Ask lienholders if they offer reduced payoffs in exchange for prompt payment.
- Track deadlines: Minnesota statutes impose strict timelines for filing and serving liens.
- Keep detailed records of all communications with health care providers and insurers.