FastCounsel

Detailed Answer

Before disbursing any personal injury settlement funds in Mississippi, you must locate and clear hospital or insurer liens to protect both client and counsel from future claims. Below is a step-by-step roadmap under Mississippi law.

1. Identify Potential Liens.

   Liens may arise from:

   • Hospital or medical provider charges (Miss. Code Ann. § 83-11-101 § 83-11-101).
   • Health insurer subrogation rights under private plans or ERISA.
   • Medicaid or Medicare reimbursement obligations (Miss. Code Ann. § 41-29-153).
2. Search County Lien Filings.

   Under the Hospital Lien Act, hospitals must file a lien with the circuit clerk within 90 days of patient discharge (Miss. Code Ann. § 83-11-115 § 83-11-115). Visit the county courthouse to review the lien book or electronic records. Record the lien claim number, filing date, and claimed amount.

3. Request Itemized Lien Statements.

   Send written lien inquiries or letters of protection to each provider and insurer. Ask for:

   • Itemized bills showing dates of service.
   • Statement of amount due.
   • Supporting contracts or policy provisions.
4. Review Insurance Subrogation Rights.

   Inspect the client’s health insurance policy for subrogation clauses. Insurers often require reimbursement of medical benefits paid. Obtain a subrogation demand letter detailing the amount claimed and the plan’s legal basis.

5. Verify and Reconcile Amounts Owed.

   Compare the itemized bills against what insurers or government payors actually paid. Mississippi law may cap lien amounts to reasonable charges. Identify billing errors, duplicate entries, or unallowable fees.

6. Negotiate Reductions or Compromises.

   Mississippi courts recognize that hospital liens may be reduced to prevent unfair depletion of settlement proceeds. Negotiate with providers and insurers by:

   • Submitting evidence of customary and reasonable charges.
   • Arguing proportional allocation if multiple providers filed liens.
   • Requesting written lien reduction agreements.
7. Satisfy Liens and Obtain Releases.

   Once terms are agreed, arrange payment directly from the settlement escrow. Secure a written lien satisfaction or release, signed by the claimant or provider. Under Miss. Code Ann. § 83-11-123 (§ 83-11-123), record the release with the circuit clerk to clear title.

8. Include Lien Discharge in Settlement Documents.

   Draft the settlement agreement to condition disbursement on receipt of all lien releases. Require the defense or escrow agent to withhold funds until proof of lien satisfaction is provided.

9. Disburse Funds from Escrow.

   After receiving all releases, instruct the escrow agent to distribute net settlement proceeds. Maintain copies of lien releases and payment records in your file for at least the period of any statute of limitations or audit risk.

Helpful Hints

• Begin lien discovery early—often insurers and providers respond slowly.
• Use escrow or qualified settlement funds to protect against late claims.
• Keep a detailed chronology of lien communications and payments.
• Confirm Medicaid/Medicare liens separately—they follow distinct federal rules.
• Consult with counsel experienced in Mississippi lien resolution to ensure compliance.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific circumstances.