Detailed Answer on Identifying and Resolving Hospital and Insurer Liens in West Virginia
Before you disburse personal injury settlement funds in West Virginia, you must identify and clear any hospital or insurer liens. Under W. Va. Code §55-2-30 et seq. (link), hospitals can record liens for unpaid medical services. Health insurers can assert subrogation rights under W. Va. Code §33-6-32 (link). Follow these key steps:
- Gather Medical Records and Bills. Request itemized statements and records from every provider: hospitals, labs, imaging centers and physicians. Match service dates and charges.
- Search County Lien Records. Check the county clerk’s online database or office for recorded hospital liens under W. Va. Code §55-2-32 (link).
- Notify Potential Lienholders. Send each hospital or provider written notice of the claim and demand a current payoff amount. Include case details and a response deadline.
- Confirm Payoff Figures. Obtain a detailed payoff letter. Verify total billed charges, payments received and the lien’s expiration date.
- Review Insurer Subrogation Claims. Identify any private or ERISA-based health plans. Request a subrogation demand or reimbursement statement. Review W. Va. Code §33-6-32 (link) for statutory rules.
- Negotiate Statutory Reductions. West Virginia limits certain hospital liens to a fraction of the net recovery. Negotiate reductions citing W. Va. Code §55-2-30.
- Obtain Written Lien Releases. After paying agreed sums, secure a release or satisfaction of lien in writing from each hospital and insurer.
- Disburse Settlement Funds. Pay in proper order: attorney fees, litigation costs, lienholders and then the client’s net share. Document each payment with copies of canceled checks or receipts.
Disclaimer: This information does not constitute legal advice. Consult a qualified West Virginia attorney for guidance on your specific case.
Helpful Hints
- Begin lien research early to avoid settlement delays.
- Keep organized records of all lien correspondence.
- Monitor lien filing deadlines to protect rights.
- Consider involving an attorney experienced in West Virginia lien law.
- Verify ERISA plan subrogation rights—they can override state limits.