What Types of Liens Commonly Apply to a Personal Injury Settlement in Minnesota?

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Types of Liens That Can Affect Your Minnesota Personal Injury Settlement

Disclaimer: This article is for educational purposes only and does not constitute legal advice.

Detailed Answer

When you recover damages in a personal injury settlement, various entities may assert liens against your award to recoup expenses they covered on your behalf. In Minnesota, common liens include:

1. Hospital and Medical Provider Liens

Under Minnesota law, hospitals and certain medical providers can file liens against third-party tort recoveries. See Minn. Stat. §145.682. A lien must be filed within 180 days of treatment.

2. Medical Assistance (Medicaid) Liens

If you received Medical Assistance through Minnesota’s Medicaid program, the state has a statutory lien against your settlement to recover costs. See Minn. Stat. §256B.14, subd. 1(b).

3. Medicare Liens

Under the Medicare Secondary Payer provisions, Medicare can require repayment of conditional payments made for your medical care. See CMS Medicare Secondary Payer and 42 U.S.C. §1395y(b).

4. Subrogation and ERISA Liens

Private health plans governed by ERISA may claim subrogation rights to recover benefits paid. See 29 U.S.C. §§1002(33), 1132(a). Minnesota’s workers’ compensation insurer may also seek reimbursement under Minn. Stat. §176.061.

5. Child Support Liens

The Minnesota Department of Human Services or county child support office can assert a lien for unpaid support against your settlement. See Minn. Stat. §518A.69.

6. Attorney’s Lien

Under Minnesota common law, your attorney typically has an equitable lien for fees and costs directly from the settlement proceeds. This lien ensures your lawyer is paid for services rendered.

Helpful Hints

  • Identify potential lienholders early in your case.
  • Review each lien against its governing statute.
  • Negotiate lien reductions when appropriate.
  • Obtain lien releases before distribution of funds.
  • Consult a qualified attorney for personalized guidance.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.