Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific case.
Detailed Answer
1. Identify and Verify Medical Liens
Before you negotiate any settlement, request itemized lien statements from all medical providers. In South Dakota, licensed hospitals and attending physicians may file a lien on your personal injury claim for services rendered related to that injury. See SDCL § 21-5-2. Ensure each statement lists dates of service, procedure codes and charges.
2. Review Statutory Hospital Liens
Under SDCL § 21-5-3, a hospital or physician must file a written lien notice within six months of the last treatment date. The lien attaches to any settlement, judgment or verdict up to the total amount billed (SDCL § 21-5-8). Verify the lien’s filing date and ensure it covers only treatment tied to your injury.
3. Address Medicaid or State Reimbursement Rights
If Medicaid or the South Dakota Department of Social Services paid your medical bills, it can assert a reimbursement lien under SDCL § 28-22-15. You must notify the agency of any settlement offer and reserve funds to satisfy its claim. Failure to do so can delay your disbursement or trigger enforcement actions.
4. Negotiate Settlement Net of Liens
Include lien amounts in your demand package to the insurer. Ask the insurer to tender funds into escrow or make joint-payee checks to you and the lienholder. Often, providers will accept a reduced payout—many hospitals negotiate liens down to 50–70% of billed charges. Engage a lien resolution specialist or your attorney to negotiate these reductions before finalizing the settlement.
5. Obtain Written Lien Releases and Full Satisfaction
Before you disburse settlement funds, secure a signed lien release or satisfaction of lien from each provider. This document confirms that the provider will not pursue additional payment. Keep these releases in your file. If the Department of Social Services has a claim, obtain a notice of reimbursement satisfaction under state regulation.
Helpful Hints
- Confirm lien filing deadlines under SDCL Chapter 21-5 to avoid missed rights.
- Request an itemized bill to spot duplicate charges or non-covered services.
- Consider a Qualified Settlement Fund or escrow account to protect all parties.
- Document every negotiation and settlement direction in writing.
- Retain all lien releases and satisfaction letters in your permanent case file.