Detailed Answer
When you resolve a personal injury claim in Virginia, various liens can attach to your settlement. These liens secure reimbursement for parties who paid expenses or provided benefits related to your injury. Understanding common liens helps you estimate your net recovery and address obligations promptly.
1. Medical Provider Liens
Medical providers—such as doctors, hospitals, and therapists—often treat injured parties on a “lien” basis. Although Virginia has no specific statute granting doctors a lien, providers may secure repayment by agreement or file a lawsuit against your settlement fund. They can claim amounts you owe for reasonable and customary treatment costs.
2. Health Insurer and ERISA Plan Liens
Private health insurers may seek subrogation under your plan’s contract. If your insurance plan is governed by the federal Employee Retirement Income Security Act (ERISA), the plan administrator can enforce subrogation rights under 29 U.S.C. § 1132(a)(3) (see: https://www.law.cornell.edu/uscode/text/29/1132). ERISA plans often demand reimbursement for all medical benefits paid on your behalf.
3. Medicare and Medicaid Liens
If you receive Medicare or Medicaid benefits for your injury, federal law requires repayment from any personal injury recovery. Medicare’s mandatory recovery provision is found at 42 U.S.C. § 1395y(b) (see: https://www.law.cornell.edu/uscode/text/42/1395y). Medicaid’s federal lien authority is in 42 U.S.C. § 1396k (see: https://www.law.cornell.edu/uscode/text/42/1396k). Both programs send a notice of conditional payment and later a demand for repayment.
4. Workers’ Compensation Liens
If your injury also gave rise to a workers’ compensation claim, your employer’s insurer has a subrogation right under Virginia law. Under Va. Code § 65.2-309 (https://law.lis.virginia.gov/vacode/title65.2/chapter5/section65.2-309/), the insurer can recover benefits paid when you obtain a third-party settlement.
5. Hospital Liens under the Virginia Hospital Lien Act
Virginia’s Hospital Lien Act (Va. Code § 8.01-226 et seq.) grants hospitals a statutory lien on a patient’s cause of action and any recovery for care related to the injury. See § 8.01-226 (https://law.lis.virginia.gov/vacode/title8.01/chapter2/section8.01-226/). To enforce this lien, hospitals must file notice in the clerk’s office of the circuit court where the suit is pending.
6. Child Support Liens
The Virginia State Disbursement Unit may file a lien to collect overdue child support. Under Va. Code § 63.2-1915 (https://law.lis.virginia.gov/vacode/title63.2/chapter19/section63.2-1915/), the unit can place a lien on a judgment or settlement in your personal injury case.
7. Tax Liens
Federal or state tax authorities can file liens against your assets, including litigation proceeds, for unpaid taxes. The federal tax lien arises under 26 U.S.C. § 6321. Virginia tax liens are governed by Title 58.1 of the Virginia Code.
8. Attorney’s Charging Lien
Under Virginia common law, your attorney has a charging lien on the client’s cause of action, judgment, or settlement to secure unpaid fees and costs. The lien attaches automatically and may be enforced by court petition or withholding settlement funds until fees are paid.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney licensed in Virginia to address your specific situation.
Helpful Hints
- Keep detailed records of all medical bills, insurance payments, and correspondence related to subrogation demands.
- Respond promptly to lien notices to avoid interest accrual or litigation.
- Negotiate lien amounts when possible; many providers will accept reduced pay-outs.
- Understand your ERISA plan’s subrogation rules if you have employer-sponsored coverage.
- File a written objection in court if you believe a lien is invalid or excessive.
- Consult your attorney early to identify and manage all potential liens before settlement.