Detailed Answer
Before finalizing a personal injury settlement or judgment in Wisconsin, you must satisfy any medical bill liens filed by hospitals and health care providers. Wisconsin law creates two primary lien mechanisms:
- Hospital Liens: Under Wis. Stat. § 895.46, a hospital has a lien on your cause of action for services related to the injury.
- Health Care Provider Liens: Under Wis. Stat. § 893.47, licensed providers (doctors, therapists, clinics) may file liens.
Step 1: Verify Lien Filing and Validity
Confirm each lien was filed in the appropriate county circuit court within the statutory deadline (generally 180 days after last treatment). Check the court’s docket and verify the patient’s name, treatment dates, and amounts. An untimely or incomplete lien may be challenged.
Step 2: Obtain Itemized Statements
Request a detailed, itemized billing from each lien holder. This must include dates of service, CPT or procedure codes, and usual and customary charges. Review carefully for duplicate or unrelated charges.
Step 3: Negotiate or Petition to Reduce Liens
Most providers will negotiate. Under Wis. Stat. § 893.47(3), you can petition the court to reduce a lien if the amount exceeds reasonable value. Courts often approve reductions to reflect fair market value or negotiated insurance rates.
Step 4: Account for Federal Subrogation
If Medicare or Medicaid covered treatment, federal and state subrogation rules apply. Medicare liens fall under 42 U.S.C. § 1395y(b). Wisconsin’s Medical Assistance program also asserts liens. Contact the Centers for Medicare & Medicaid Services or the Wisconsin Department of Health Services for payoff quotes.
Step 5: Determine Priority of Claims
Statutorily, hospital liens and medical provider liens attach directly to your recovery before attorney fees. Your attorney’s own charging lien generally attaches after medical liens are satisfied. Draft settlement documents that allocate funds to each lien holder.
Step 6: Finalize Settlement and Disburse Funds
At closing, disburse the agreed lien amounts directly to each holder. Obtain signed lien releases or satisfaction statements. File any required lien satisfaction forms with the circuit court to clear encumbrances.
Helpful Hints
- Keep a centralized spreadsheet showing each lien holder, filing date, billed amount, status, and payoff quote.
- Obtain written payoff quotes with expiration dates to avoid last-minute disputes.
- Consider hiring a lien resolution specialist for complex cases with multiple providers or federal subrogation.
- Negotiate global reductions—many providers will accept a percentage of billed charges.
- Include lien satisfaction as a condition of settlement in writing to ensure all parties are bound.
- Before signing release papers, confirm your attorney has reviewed all liens and payoff amounts.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney in Wisconsin for advice specific to your situation.