Disclaimer: This article provides general legal information and is not legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
In Wisconsin, several types of liens may attach to a personal injury settlement. A lien gives a third party a legal right to recover medical bills, public benefits, or other expenses from your settlement proceeds. Understanding these liens helps you plan for out-of-pocket costs and net recovery.
1. Hospital and Medical Provider Liens
Under Wis. Stat. §706.01, licensed hospitals and certain medical providers may file a lien against any tort recovery related to treatment. The lien amount equals the reasonable value of services rendered. Providers must file a notice of lien in the county where the action is pending or where they treated you. You must resolve these liens before distributing settlement funds. Wis. Stat. §706.01.
2. Wisconsin Medical Assistance (Medicaid) Liens
Wisconsin’s Medical Assistance program (Medicaid) can seek reimbursement from a personal injury settlement if it paid for your care. Under Wis. Stat. §49.45(27), the state may place a lien on personal property (excluding motor vehicles) to recover medical assistance paid on behalf of a beneficiary aged 55 or older. The Department of Health Services enforces this lien. Wis. Stat. §49.45(27).
3. Private Health Insurance and ERISA Subrogation
If a private insurer paid your medical bills, it often has subrogation rights. Under the Employee Retirement Income Security Act (ERISA), insurers can claim reimbursement from your settlement. Federal law permits them to enforce plan terms that allow recovery of conditional payments. Review your insurance policy or plan documents for specific subrogation language.
4. Medicare Conditional Payment and Recovery
Medicare may pay for your medical treatment on a conditional basis if your injury falls under its coverage. Under the Medicare Secondary Payer Act (42 U.S.C. §1395y(b)), Medicare can demand repayment from settlement proceeds for expenses it covered. You must request a conditional payment report and satisfy Medicare’s claim before distributing funds.
5. Child Support and Family Court Liens
If you owe past-due child support or family maintenance, Wisconsin courts can intercept a personal injury settlement. Under Wis. Stat. §767.30, the county child support agency may file a lien against any judgment or settlement. You must clear these liens before you receive your net proceeds. Wis. Stat. §767.30.
6. Federal and State Tax Liens
The IRS can place a lien on any assets, including personal injury settlements, to secure unpaid federal taxes. State tax authorities may also file liens for unpaid state taxes. Check your tax compliance status to avoid unexpected liens at distribution.
Helpful Hints
- Obtain lien statements early in settlement negotiations to budget accurately.
- Verify each lien’s filing deadline to protect your rights and avoid disputes.
- Negotiate reductions with medical providers—many will accept less than billed charges.
- Request a Medicare conditional payment demand from the CMS website.
- Review your health insurance policy for subrogation or reimbursement clauses.
- Consult an attorney before signing any release to ensure liens are fully resolved.