Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Before releasing any settlement funds in North Dakota, you must identify and resolve all hospital and insurer liens. North Dakota law allows medical providers to assert liens against personal injury settlements to secure payment of services (see NDCC Chapter 32-35). Public benefits programs (Medicaid) and private insurers may also have subrogation or reimbursement rights under federal or state law.
1. Gather Records and Client Information
Ask your client to list all medical providers, treatment dates, and insurance coverage. Request itemized bills, Explanation of Benefits (EOBs), and any correspondence from Medicaid, Medicare, or private insurers.
2. Search for Filed Liens
Medical providers must file liens with the county recorder or clerk within 60 days after the last date of service (NDCC §§ 32-35-02 to 32-35-04). Conduct a lien search in each county where treatment occurred to uncover any recorded claims.
3. Request Lien Statements
For each identified lienholder, request a sworn lien statement showing the outstanding balance and a breakdown of services. Providers must furnish this statement within 30 days of request (see NDCC § 32-35-06).
4. Review Public Benefits Reimbursement
If your client received Medicaid or Medicare, federal law requires you to notify the agency and seek a conditional payment amount. Send a notice to Medicaid at least 30 days before settlement and pay any approved lien amount. See Medicaid Third Party Liability.
5. Negotiate Reductions
Medical providers often reduce liens to facilitate settlement. Negotiate for a reasonable payoff—many hospitals agree to accept a percentage of billed charges in full satisfaction. Document any agreed reductions in writing.
6. Obtain Releases and Satisfaction Instruments
After payment, secure a lien release or satisfaction form from each provider. File the release with the county recorder to clear the lien on the public record (NDCC § 32-35-08).
7. Confirm Insurance Subrogation Waivers
Request written confirmation from private insurers that they will not pursue subrogation after payment. Review policy language and state regulations (see NDCC Title 26.1).
8. Disburse Settlement Funds
Only after verifying all liens are released should you disburse the net settlement. Maintain copies of all releases and paid statements in your client’s file to protect against future claims.
Helpful Hints
- Start lien investigation early—some providers file late or inaccurately.
- Keep detailed communication logs with every lienholder.
- Use a spreadsheet to track outstanding liens, demands, and payoffs.
- Confirm client’s benefits status throughout the case (Medicaid eligibility can change).
- Retain signed releases before making any funds distribution.