Detailed answer — step-by-step: identify, verify, and resolve medical liens

If you have a personal injury claim in New Mexico, medical providers, government health programs, and insurers may assert liens or seek reimbursement from any settlement. Follow these step‑by‑step actions to identify and resolve liens before you accept or disburse settlement money.

1) Start early: gather records and billing

1. Request and review all medical records and itemized bills for care related to the injury. Include hospitals, ERs, labs, imaging centers, urgent care, ambulance providers, pharmacies, and any specialty care.
2. Ask providers for written statements of any liens, balances, or contractual obligations, and for the billing codes and dates of service tied to the incident.

2) Identify likely lienholders

• Private medical providers and hospitals: they sometimes assert statutory or common‑law liens or expect direct reimbursement from settlement proceeds.
• Medicaid (state) and Medicare (federal): both programs may seek repayment for benefits paid related to the injury.
• Private health insurers and ERISA plans: they may have subrogation or reimbursement rights under plan terms.
• Workers’ compensation: if the injury is work related, the worker’s comp carrier may have lien or reimbursement rights.

For New Mexico-specific resources, check the New Mexico Human Services Department (Medicaid) at https://www.hsd.state.nm.us/ and the New Mexico Legislature site for statutes at https://www.nmlegis.gov/.

3) Check federal and programmatic recovery processes

• Medicare: if Medicare paid for any treatment, the federal program may assert a conditional payment and require repayment from your settlement. Contact the Centers for Medicare & Medicaid Services (CMS) for conditional payment info: https://www.cms.gov/.
• Medicaid (New Mexico): the state may pursue recovery for benefits paid. Contact New Mexico HSD for instructions on Medicaid third‑party recovery.

4) Demand written lien statements and verify amounts

1. Obtain written, itemized statements showing the exact amount the provider claims is owed and the legal basis for any lien or subrogation claim.
2. Verify that the billed treatment is related to the accident or injury. If bills include unrelated care, request that the provider identify services by date and diagnosis so you can contest unrelated charges.

5) Analyze legal basis and priority

Not every bill equals an enforceable lien. Common issues to review:

• Whether the provider has a statutory lien under New Mexico law or only a contractual right to payment.
• Whether public payers (Medicaid/Medicare) have priority recovery rights and whether state law permits recovery from a claimant’s net recovery after certain deductions.
• Whether an insurer’s plan is governed by ERISA (federal law) which affects how subrogation and reimbursement are enforced.

6) Negotiate liens before settlement

1. Negotiate reductions where possible. Providers often accept a discounted lump‑sum payment rather than enforcing a full billed amount.
2. For government payers, follow the payer’s required process for conditional payment determination and final demand. For Medicare, you may request a conditional payment amount and then a final demand from CMS.
3. Consider apportioning the settlement (medical vs. pain and suffering) in negotiations to limit lienable portions; document allocations in the settlement agreement.

7) Protect settlement funds until liens are resolved

• Do not disburse funds until you have resolved or escrowed disputed liens.
• If a lienholder refuses to sign a release, consider placing the disputed portion in court or neutral escrow while you seek a judicial determination or further negotiation.
• Require written lien releases or payoff statements showing zero balance before final disbursement.

8) Document releases and keep records

Get written lien releases, payoff letters, or satisfaction entries from each provider and payer. Keep all correspondence, bills, and settlement paperwork in case a lienholder later asserts a claim.

9) When to get legal help

Consult a New Mexico attorney experienced in personal injury and lien resolution if you encounter:

• Unclear or disputed lien amounts.
• Claims by Medicaid, Medicare, or ERISA plans that require formal demand and repayment procedures.
• Multiple claimants or complicated apportionment of settlement proceeds.

If you need a local starting point, review New Mexico legal resources and consider contacting the New Mexico State Bar or a licensed attorney in your county.

Helpful Hints

• Start lien work early. Identifying liens late can delay or jeopardize your settlement disbursement.
• Always get itemized bills and written payoff letters—oral promises rarely protect you.
• Contact Medicare and New Mexico Medicaid directly when those programs paid benefits. Their repayment processes differ from private payers.
• Negotiate: providers often accept much less than billed amounts in settlement contexts.
• Keep settlement allocations explicit (medical vs. non‑medical) so you can show what portion lienholders may claim.
• Escrow disputed funds rather than paying and later facing claims or litigation over improper disbursement.
• Document everything. If a lienholder sues later, records of payments, releases, and communications help defend you.
• If workers’ comp is involved, follow workers’ comp procedures — those claims have their own priority and handling rules (see the New Mexico Workers’ Compensation Administration: https://www.workerscomp.nm.gov/).

For federal Medicare recovery information, see CMS: https://www.cms.gov/. For New Mexico Medicaid matters, visit New Mexico HSD: https://www.hsd.state.nm.us/. For New Mexico statutes and legislative resources, see the New Mexico Legislature: https://www.nmlegis.gov/.