Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified New Jersey attorney about your specific situation.
Understanding Medical Liens in New Jersey Personal Injury Cases
When someone else’s negligence causes your injury, you can recover compensation for medical bills through a personal injury settlement. In New Jersey, hospitals and medical providers can secure payment by placing a lien on your settlement proceeds. A lien gives the provider a legal right to be paid directly from your settlement before you receive funds.
Statutory Basis for Hospital and Medical Provider Liens
New Jersey’s Hospital Lien Act authorizes hospitals to file liens against personal injury recoveries. See N.J.S.A. 2A:17-66.10 to 2A:17-66.16 (PL 1985, c. 142). Physicians and other health professionals may use the Professional Fund Lien Act under N.J.S.A. 2A:17-66.18 to 2A:17-66.20 to secure payment for their services.
Government and Insurer Subrogation Claims
If you received Medicaid benefits, the state can assert a lien under N.J.S.A. 30:4D-19 (PL 1981, c. 141). Medicare claims follow federal regulations (42 C.F.R. § 447.56). Both government liens attach to your settlement, similar to private medical liens.
Do You Have to Pay These Liens?
Yes. Valid medical liens in New Jersey attach to your settlement by statute. You must satisfy those liens before distributing any net proceeds to yourself. If you ignore a lien, the holder can enforce it in court. However, you may negotiate reductions, often accepting a percentage of billed charges to maximize your net recovery.
Practical Steps After Your Settlement
- Review your settlement and all related proof-of-loss documentation.
- Request detailed lien statements from each medical provider.
- Verify each lien’s validity, including timely filing and proper notice.
- Negotiate lien reductions or structured payment plans where possible.
- Instruct your attorney or settlement administrator to pay valid lienholders first and obtain lien releases in writing.
Helpful Hints
- Check New Jersey Court Rule 4:21-8 for deadlines on filing liens.
- Ask providers for itemized billing to confirm charges.
- Get all lien payments confirmed in writing to prevent future claims.
- Consider mediation if lien amounts seem unreasonable.
- Keep records of every communication regarding liens and payments.