Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
When you receive a personal injury settlement in Missouri and an employer or its insurer claims a workers’ compensation lien, you must follow specific steps to verify and satisfy that lien under Missouri law. Missouri Revised Statutes Section 287.150 grants employers or insurers a right to reimbursement from any recovery you obtain from a third party. Here’s how to handle the process:
1. Identify the Lien Claimant
Confirm that the party asserting a lien is your workers’ compensation insurer or your employer’s named carrier. The lien should reference RSMo § 287.150.
2. Request a Detailed Lien Statement
Ask the lien claimant for a sworn statement of benefits paid, including:
- Date ranges of compensation paid;
- Medical expenses covered;
- Total amount claimed plus statutory interest.
3. Review for Accuracy
Compare the lien statement with your records and your workers’ compensation award. Check that:
- Benefit dates match your injury dates;
- Medical charges weren’t already reimbursed by another source;
- Interest was calculated correctly per RSMo § 287.150.
4. Negotiate if Necessary
If you believe the lien is too high or improperly calculated, negotiate with the claimant. You can:
- Offer to cap the lien at a percentage of your net recovery after attorney fees; or
- Argue that certain medical costs are not lienable under Missouri law.
5. File a Petition for Approval
Missouri courts require judicial approval to allocate settlement funds and satisfy a lien. File a petition in the county where your workers’ compensation claim is pending. The petition should include:
- Settlement agreement;
- Breakdown of how funds will be allocated (attorney fees, expenses, lien payment, and patient net);
- Proof of service on all interested parties.
Once the court signs an order, you can distribute the funds according to the approved allocation.
6. Satisfy the Lien
After court approval, pay the lien claimant the amount ordered. Obtain a written release or satisfaction of lien. Keep this document for your records and to avoid future claims.
Helpful Hints
- Start lien negotiations early to avoid delaying settlement disbursement.
- Maintain organized records of all medical bills and benefit payments.
- Consult court rules in the relevant Missouri circuit for petition requirements.
- Confirm the lien release’s scope covers all past and future claims.
- Retain a copy of the approved court order and satisfaction of lien.