Disclaimer: This article is not legal advice. Consult a qualified attorney for guidance.
Detailed Answer
When you reach a personal injury settlement in South Dakota, medical providers often assert liens to recover the cost of your care. You may need to pay these liens before you receive your net proceeds. Below is an overview based on South Dakota law.
1. Hospital Liens Under SDCL 21-7-11
South Dakota Codified Laws § 21-7-11 allows hospitals to file a lien against your claim or recovery. After treating you for a work-related or third-party injury, a hospital may record a lien in the office of the circuit clerk. This lien covers reasonable charges up to the amount you recover. See SDCL 21-7-11.
2. Liens for Other Medical Providers
Physicians, ambulance services and other providers may also claim liens. While South Dakota does not set a single statute for all providers, courts have enforced liens based on the same principles as hospital liens. Always request a written statement of lien and verify its validity.
3. Medicaid and Medicare Reimbursement
If Medicaid covered any treatment, federal law requires you to reimburse Medicaid from your settlement. Under the Social Security Act § 1902(a)(25), states recover medical costs from third-party recoveries. See SSA Act § 1902(a)(25). Medicare follows similar rules under federal regulations.
4. Negotiating Lien Amounts
You can often negotiate medical liens. Provide providers with a copy of your settlement agreement and settlement checks. Some providers accept a percentage of the billed amount or a flat fee. Get all agreements in writing.
5. Paying Liens and Settlement Distribution
Your settlement distribution typically pays valid, court-approved liens first. The personal injury attorney handling your case should ensure liens are satisfied before you receive any funds. If you fail to pay a valid lien, the provider may sue you directly.
Helpful Hints
- Work with an experienced South Dakota personal injury attorney to review all liens.
- Obtain written lien statements that detail amounts and services.
- Contact Medicaid or Medicare to confirm your reimbursement obligation.
- Consider negotiating reduced payoffs to conserve your settlement funds.
- Ensure your attorney obtains lien releases or satisfaction documents after payment.