Disclaimer
The information in this article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney in Mississippi to discuss your specific situation.
Detailed Answer
When you recover money from a personal injury settlement in Mississippi, medical providers and certain government agencies can assert liens against those proceeds to secure payment for treatment. You normally must satisfy valid liens before you receive your net settlement amount. Here’s how Mississippi law treats the most common medical liens:
1. Hospital and Provider Liens
Under Miss. Code Ann. § 11-46-1, a hospital that treats you for injuries may file a verified lien in the chancery clerk’s office. This lien attaches to any judgment or settlement you obtain for that same injury. Private physicians and other health-care providers generally enforce charges through billing or a court judgment rather than a statutory lien, unless they have a signed agreement granting lien rights.
Before distributing your settlement, your attorney typically verifies filed liens and ensures they attach properly under Miss. Code Ann. § 11-46-1. If the lien is valid, you must pay it out of your gross recovery.
2. Medicaid Subrogation Liens
If you received Medicaid benefits to pay medical bills, the Mississippi Department of Human Services (MDHS) holds a subrogation lien on any third-party recovery. Under Miss. Code Ann. § 43-13-117, MDHS must be reimbursed for all medical assistance paid on your behalf. The department generally records notice of its claim in chancery court and enforces repayment from your settlement.
Miss. Code Ann. § 43-13-121 requires MDHS to contribute a pro rata share of attorney fees and litigation costs when your recovery would not have been possible without third-party reimbursement. Your attorney negotiates this contribution before distributing funds.
3. Negotiation and Reduction of Liens
Even valid liens can sometimes be reduced. Medical providers often accept a percentage of billed charges in exchange for immediate payment from your settlement trust. MDHS occasionally negotiates its lien if the full amount would leave you without meaningful relief, though there is no statutory requirement for substantial reduction.
4. Process for Paying Liens
- Your attorney holds the gross settlement in trust.
- All known liens and claims—including hospital liens under § 11-46-1 and MDHS subrogation under § 43-13-117—are identified and verified.
- Liens are negotiated or confirmed for full payment.
- Attorney fees, costs, lien payments, and any outstanding medical bills are paid out of the trust.
- You receive the remaining net proceeds.
Helpful Hints
- Document every medical provider and insurer involved in your treatment.
- Ask your attorney for a lien verification letter from each provider.
- Negotiate reductions early—providers may settle for 30–50% of billed charges.
- Confirm that MDHS applies the pro rata fee credit under § 43-13-121.
- Review your settlement statement line by line before signing.
- Keep copies of all lien releases and paid-in-full notices for your records.