Disclaimer: This article is for educational purposes only and is not legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When you’re negotiating a settlement in Nebraska, you must address any medical liens or outstanding bills before finalizing your recovery. A medical lien is a claim that a health-care provider or the state may have against your settlement to recover costs they paid on your behalf. Handling these liens correctly helps you maximize your net recovery and avoid unexpected shortfalls.
1. Identify All Potential Liens and Bills
- Request lien statements from all health-care providers who treated you after the incident.
- Check for a government medical assistance lien under Neb. Rev. Stat. § 44-2816 (https://nebraskalegislature.gov/laws/statutes.php?statute=44-2816).
- Include related expenses such as ambulance services, diagnostics and rehabilitation.
2. Verify Lien Validity and Amounts
- Confirm the dates of treatment and amounts billed match your medical records.
- Ensure the provider complied with Nebraska’s lien filing requirements, including timely notice.
- Request detailed billing codes and explanation of benefits to spot errors or duplicate charges.
3. Prioritize and Negotiate Liens
- Determine if certain liens are subject to reduction. Many providers will accept a percentage of the billed amount.
- Negotiate directly or through your attorney to reduce balances in exchange for prompt payment.
- Offer partial assignments: pay the provider a negotiated lump sum and release the lien.
4. Mediate Conflicts Between Liens and Attorney Fees
- Review your contingent fee agreement: attorney fees are often calculated on the gross recovery.
- Negotiate a lien repayment plan that preserves enough funds to cover legal fees and out-of-pocket expenses.
- Ensure compliance with Nebraska’s ethical rules so attorney fees and lien repayments are fairly allocated.
5. Secure Lien Releases and Close the Case
- Obtain a written lien release or satisfaction document from each provider before disbursing funds.
- File a certified copy of releases with the court or file clerk if required by local rules.
- Keep all documents in case of future audits or disputes.
Relevant Nebraska Statutes
- Neb. Rev. Stat. § 44-2816: State medical assistance lien (https://nebraskalegislature.gov/laws/statutes.php?statute=44-2816).
- Neb. Rev. Stat. § 30-413 to § 30-416: Assignment of cause of action and lien enforcement.
Helpful Hints
- Start gathering lien information early—even before drafting a settlement demand.
- Keep detailed records of all communications with providers about liens or bills.
- Consider hiring a medical billing advocate to review and negotiate bills.
- Maintain clear communication with your attorney about lien negotiations and priorities.
- Confirm that Medicare or Medicaid repayments are handled according to federal law to avoid a secondary lien.