Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific circumstances.
Detailed Answer
1. Understanding Medical Liens in Wisconsin
In Wisconsin, medical providers such as hospitals and physicians may file liens against a personal injury settlement to secure payment for services rendered. Key statutes include:
- Hospital liens: Wis. Stat. § 328.70 (docs.legis.wisconsin.gov/statutes/statutes/328/70)
- Physician liens: Wis. Stat. § 328.72 (docs.legis.wisconsin.gov/statutes/statutes/328/72)
These liens attach when a provider files a certified statement of services in the county circuit court where the injured person resided at the time of injury. The lien must be filed within six months of the last date of service.
2. Identifying Outstanding Medical Bills
Before negotiating a settlement:
- Request itemized medical bills from your provider or attorney.
- Confirm any health-insurance payments or adjustments under Wis. Stat. § 895.46 (docs.legis.wisconsin.gov/statutes/statutes/895/46), protecting you from deductible reductions at trial.
- Check for subrogation claims by private insurers or government payers (e.g., Medicare).
3. Negotiating with Lienholders and Insurers
When you settle a claim, the liable party often issues payment directly to you or your attorney. To address liens:
- Notify each lienholder of your intent to settle and provide a copy of the draft agreement.
- Request payoff statements showing exact amounts owed, including any interest or filing fees.
- Negotiate a reduction. Providers frequently accept a percentage of billed charges to resolve liens promptly.
4. Incorporating Liens into Your Settlement Agreement
To ensure a clean resolution:
- Include a clause requiring the defendant or insurer to pay lienholders directly from settlement proceeds.
- Set aside escrow funds if multiple liens exist, with clear instructions for distribution.
- Obtain lien releases or satisfaction documents before disbursing remaining funds to you.
Helpful Hints
- Early lien identification avoids last-minute surprises and protects your net recovery.
- Consider hiring a settlement administrator to manage multiple liens efficiently.
- Document all communications in writing and keep copies of pay-off letters.
- Verify that reduced lien amounts are fair: some states cap lien reductions under statute or case law.
- Retain an attorney experienced in Wisconsin personal injury settlements to guide you through statutory deadlines and filings.