Detailed Answer

Short answer: Possibly. Whether medical providers (including chiropractors), health insurers, Medicare, Medicaid, or other payers can take money from a personal-injury settlement in Wyoming depends on the type of claim those providers have (statutory lien, contract, subrogation, or assignment) and on federal rules that can apply (for example, Medicare/Medicaid). You are not required to pay a provider out of your settlement unless the provider has a valid legal claim to repayment or a lien. This article explains the common categories of claims, how they work in Wyoming, and practical steps to protect your settlement.

Disclaimer: This is educational information only and not legal advice. Consult a licensed Wyoming attorney about your specific situation.

Types of medical-related claims that can reduce a settlement

• Statutory or recorded provider liens: Some states authorize hospitals, physicians, or other medical providers to claim a lien against the proceeds of a personal-injury recovery. Whether a chiropractor can assert a statutory lien in Wyoming depends on the statute and how the chiropractor billed/recorded the claim. To review Wyoming statutes and any lien provisions, see the Wyoming Legislature’s statutes search: https://wyoleg.gov/StateStatutes.
• Assignment of benefits or contractual liens: If you signed a document assigning payment rights to a provider (for example, “I assign to this clinic any recovery” or the provider has a written lien agreement), the provider can try to collect from your settlement under that contract.
• Health insurer subrogation: Private insurers commonly pay initial medical bills and then assert subrogation or reimbursement rights against any later settlement. The insurer’s right usually depends on the plan language, whether the plan is governed by ERISA (a federal law that often preempts state rules), and whether the insurer properly preserved its claim.
• Medicare and Medicaid: Federal law gives Medicare and Medicaid programs strong recovery rights for medical expenses they paid. If Medicare or Wyoming Medicaid paid for treatment related to the accident, you must report the settlement to the agency and they may require reimbursement from your settlement. For Wyoming Medicaid information, see the Wyoming Department of Health: https://health.wyo.gov/. For Medicare recovery rules, see the Centers for Medicare & Medicaid Services: https://www.cms.gov/.
• Workers’ compensation liens: If an injury relates to a workplace accident and workers’ compensation benefits were paid, the employer or its carrier may have a lien or subrogation claim against any third-party recovery.

How liens and subrogation claims are enforced

A provider or insurer may: (1) record a statutory lien; (2) send a written demand or notice of subrogation; (3) bring a lawsuit for reimbursement; or (4) negotiate a compromise. If a valid lien exists or the payer is entitled to reimbursement, you (or your attorney) will usually need to satisfy that claim before the settlement funds are distributed. If the payer has no enforceable claim, they may still demand payment until you dispute it.

Simple hypothetical examples

Example A — No lien recorded, clinic billed but you signed no assignment: You get a $40,000 settlement after a crash. Your chiropractor has $1,200 in unpaid bills but no recorded lien or assignment. Without a legal lien or valid subrogation right, the chiropractor may attempt to collect but cannot automatically take settlement money; you can negotiate payment or contest the claim.

Example B — Insurer subrogation and Medicare: You settle for $60,000. Your private insurer paid $5,000 and claims subrogation under your plan. Separately, Medicare paid $3,000 and will assert recovery rights under federal law. Both payers can demand reimbursement; Medicare’s demand must be resolved before final distribution of settlement funds tied to that medical care.

What to do to protect your settlement

1. Get all bills and payment records. Collect itemized bills, payment histories, and any assignment or lien documents from every provider and insurer that paid or provided treatment.
2. Notify all likely claimants in writing. If you have a settlement or you intend to negotiate one, notify insurers, Medicare/Medicaid, and providers so they can preserve or assert their rights and so you can learn the amounts they expect.
3. Ask for written lien statements or releases. Request a written statement of the amount claimed and a signed lien release upon payment. Do not pay a provider without a written release or agreement.
4. Negotiate reductions. Medical providers and insurers frequently accept less than the billed amount when you offer a lump-sum settlement. Many providers will accept negotiated payoffs.
5. Resolve federal-program claims first. Medicare and Medicaid have mandatory recovery procedures; failure to resolve those can create serious penalties. Contact the proper agency early. See CMS for Medicare and the Wyoming Department of Health for Medicaid: https://www.cms.gov/ and https://health.wyo.gov/.
6. Obtain a court-approved allocation if needed. When settlement money covers multiple categories (past medicals, future medicals, pain & suffering), having a clear allocation in writing can help limit claims against funds allocated to non-medical damages. Courts may scrutinize allocations, especially for minors or structured settlements.
7. Work with an attorney experienced in lien resolution. An attorney can identify lien holders, demand lien statements, negotiate reductions, and ensure you receive written releases before distribution. If you have limited funds, counsel can also advise about priorities.

Helpful Hints

• Before signing any lien- or assignment-related forms, understand what rights you are giving to the provider.
• Keep a copy of every medical bill, insurance payment, and correspondence about liens or subrogation.
• Do not disburse settlement funds until all known statutory or federal liens (especially Medicare/Medicaid) are addressed in writing.
• Ask providers for “lien payoff” or “compromise” amounts in writing; many will accept a negotiated lump-sum that is lower than the billed amount.
• If the insurer’s subrogation claim is governed by ERISA (an employee benefit plan), legal rules are different and you should get counsel familiar with ERISA litigation and settlement practices.
• If you cannot afford an attorney, contact the Wyoming State Bar or local legal aid organizations for referral to low-cost options.

Final practical advice

In Wyoming, medical and chiropractic bills can reduce your net settlement only if the provider or payer has a valid, enforceable claim (statutory lien, assignment, contract, or federal program recovery right). Always gather documentation, notify potential claimants early, and get written payoff agreements or releases before disbursing settlement proceeds. Because laws and priorities vary by payer and the facts of each case, consult a Wyoming-licensed attorney to review lien rights, negotiate payoffs, and protect your net recovery.