Handling Medical Liens in Utah – Detailed Answer
Disclaimer: This article provides general information only and does not constitute legal advice.
When you negotiate a personal injury settlement in Utah, you must address any medical liens or outstanding healthcare bills to ensure clear title to your settlement funds. A medical lien allows healthcare providers to secure payment for services from your settlement under Utah law.
- Identify Medical Liens and Outstanding Bills
Request itemized statements from all providers who treated you. Verify which providers have filed liens under Utah Code Ann. Section 78B-5-811. These liens attach only to settlement proceeds, not other assets. - Obtain and Review Lien Documentation
Healthcare providers must file lien documentation within 180 days after your last treatment. Confirm that each lien meets statutory requirements and includes the correct patient name, lien amount, and treatment dates. - Verify Lien Priority and Validity
Under Utah Code Ann. Section 78B-5-826, certain liens (e.g., first-party insurers or child support) take priority over medical liens. Ensure no other higher-priority claims affect your settlement allocation. - Negotiate Reductions with Providers
Most providers will negotiate their billed amount for a faster payoff. Use Medicare or Medicaid fee schedules as benchmarks to argue for reasonable reductions. A written demand letter with comparative fee data strengthens your position. - Allocate Settlement Proceeds Strategically
Structure your settlement agreement to allocate specific amounts for medical liens, attorney fees, and your net recovery. Clear allocation prevents providers from pursuing unaddressed claims later. - Secure Written Lien Releases
After paying a negotiated amount, obtain a written lien release or satisfaction letter from each provider. That document protects you against any future claims on your settlement funds.
Helpful Hints for Negotiating Medical Liens
- Collect all medical bills and lien notices before settlement talks begin.
- Use publicly available fee schedules to challenge inflated bills.
- Document every phone call and email with providers.
- Confirm lien deadlines to avoid missing Utah’s 180-day filing window.
- Consider hiring a personal injury attorney to handle complex negotiations.