Disclaimer: This article provides general information only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When you settle an injury claim in Ohio, you may face unpaid medical bills or asserted liens from hospitals, doctors, or insurers. Under Ohio law, certain providers can file a lien against your settlement under Ohio Revised Code §2303.201–§2303.207. Managing these liens properly ensures you comply with statutory requirements and maximize your net recovery.
1. Identify All Medical Bills and Liens
Request itemized statements from every medical provider, ambulance service, and rehabilitation facility involved in your treatment. Check for liens from private insurers and federal programs like Medicare or Medicaid, which have separate reimbursement rules.
2. Review Ohio’s Lien Statute
Ohio Revised Code §2303.201 grants hospitals and providers a statutory lien for charges secured by filing a notice with the clerk of courts. For details, see ORC 2303.201. The statute outlines filing deadlines and required notice content. Ohio Revised Code §2303.202 describes how to enforce and contest a lien: ORC 2303.202.
3. Obtain Lien Amounts and Deadlines
Contact each lienholder to confirm the exact lien amount, supporting documentation, and the deadline to file objections. Compare the billed amount with the reasonable value of services. You may negotiate reductions if bills exceed usual and customary rates.
4. Negotiate Reductions or Releases
Many providers will agree to a reduced flat fee in exchange for prompt payment from your settlement. Draft a written agreement or “lien release” that specifies the reduced amount. Obtain releases from all lienholders before disbursing funds.
5. Allocate Settlement Proceeds
Ohio courts require settlement allocations to cover attorneys’ fees, costs, then valid medical liens. Document all payments and releases. If a lienholder refuses to reduce or release, place the disputed amount in escrow and seek court intervention under ORC 2303.203.
6. Address Federal Program Liabilities
If Medicare or Medicaid paid for your care, you must notify and secure reimbursement under federal law. Failing to do so can result in penalties or loss of future benefits.
Helpful Hints
- Maintain a spreadsheet of all medical providers, billed amounts, and lien deadlines.
- Request itemized bills and lien statements in writing to avoid surprises.
- Negotiate early—many providers accept substantial discounts for prompt payment.
- Use escrow for disputed lien amounts until you resolve the issue in court.
- Consult counsel on Medicare/Medicaid reimbursement to prevent federal penalties.
- Document every payment and release to protect against future claims.