How to Satisfy Medical Bill Liens Before Finalizing a Personal Injury Recovery in Nebraska

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.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

Disclaimer: This article is for educational purposes and does not constitute legal advice. Always consult a qualified attorney for advice on your specific situation.

Detailed Answer

Under Nebraska law, medical providers and government agencies can assert liens against a personal injury recovery to recoup expenses paid on your behalf. Key statutes include the Medicaid lien under Neb. Rev. Stat. § 44-2814 and the Hospital Lien Act at Neb. Rev. Stat. § 52-1201 et seq.. Private health insurers often pursue subrogation under contract or equitable subrogation.

  1. Identify all liens. Request lien statements from Medicaid, hospitals, nursing homes, physicians and private insurers. Compare statements to your medical records.
  2. Verify validity and priority. Check each lien’s compliance with Nebraska’s filing deadlines (often within 90 days of the last treatment). Confirm the amount claimed matches your bills.
  3. Request itemized bills and releases. Ask each lienholder for an itemized billing ledger and a written lien release upon payment.
  4. Negotiate reductions. Many providers will accept less than the full billed amount. Submit a written offer and attempt to resolve any billing disputes.
  5. Allocate settlement funds. Before disbursing net recovery to claimants, instruct your settlement administrator or attorney to escrow sufficient funds to satisfy each lien.
  6. Pay liens and obtain releases. Issue payment directly to each lienholder and obtain a formal release or satisfaction of lien document.
  7. File proof of satisfaction. If required by court order or statute, file lien releases with the court or record their satisfaction with the county clerk.

Helpful Hints

  • Start lien clearance early: Begin as soon as you have a settlement offer.
  • Maintain detailed records: Keep copies of all correspondences, bills and releases.
  • Confirm deadlines: Nebraska’s lien statutes impose strict timing requirements.
  • Consider professional help: A personal injury attorney or settlement administrator can streamline the process.
  • Watch out for subrogation clauses: Your health insurance plan may demand reimbursement.
  • Get written proof: Never disburse funds until you hold a valid release document.

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.