Personal Injury Lawyer Virginia Beach
When it comes to your personal injury settlement, it is important to have a general understanding of the factors that affect your bottom line at the end of the day.
One such factor is health insurance. Folks are often surprised to hear that they may have to pay their health insurance back for the treatment they received as a result of another person’s negligence. This is because, generally speaking, health insurance companies have a lien on the proceeds of your settlement for the amount paid on your behalf for your treatment.
It’s common to feel confused about health insurance liens. Entire classes and seminars are taught on the subject, and both federal and state laws apply. This is why it is important to hire an attorney to help you understand your health insurance liens and to ensure that they are properly accounted for throughout the settlement process. Our Virginia Beach personal injury lawyers at Shapiro, Washburn, & Sharp can help. Call us at 833-997-1774 for a free consultation on your case.
What Are Health Insurance Liens?
A health insurance lien is a legal claim that your health insurance provider has on the proceeds of your personal injury settlement or verdict. Simply put, it allows the health insurance provider to recover certain amounts paid for your medical treatment related to your injury. The process is referred to as “subrogation,” which refers to the legal right of an insurance company to recover costs it has paid on behalf of an insured person.
This may come as a surprise or feel unfair. After all, you pay your insurance premiums to be able to use your coverage when you need it. You may not even have seen a bill or have been out of pocket but a few dollars.
Most people don’t think about having to pay back insurance. In theory, however, because your injury was someone else’s fault—the negligent party, not the insurer—the negligent party should be responsible for your medical bills, not the insurer. That is to say that the at-fault party should bear all the responsibility for your medical costs, not your own insurance company.
Your attorney can help you navigate the specific details of your particular health insurance liens. It helps to generally understand, though, that you may have to pay something back to your health insurance company out of the proceeds of your settlement or verdict so that you can set your expectations accordingly. You should also know that, in Virginia, health insurance liens are limited to a maximum of $2,500 for plans subject to Virginia law. That being said, there is no such limit for plans administered by a federal program such as Medicare or Medicaid.
Why Is It Important to Understand Health Insurance Liens When Considering a Settlement?
A personal injury settlement or verdict is typically a final resolution of the matter intended to compensate you for all your injuries and other damages, including your medical bills, lost wages, pain and suffering, and other financial losses. It is usually your responsibility to satisfy any and all existing health insurance liens on the proceeds of your settlement or verdict.
Because they’re your responsibility, health insurance liens will reduce the bottom-line final amount you receive from your settlement. You must, therefore, have a complete understanding of what amounts need to be paid back in order to be fully informed when considering whether or not to settle your personal injury claim for a particular amount of compensation.
Can We Reduce or Eliminate Any Liens on My Settlement?
Liens aren’t always set in stone. Health insurance companies and federally administered health insurance programs are often willing to consider a reduction in the amount of their lien. This is another reason it is important to hire an attorney. At Shapiro, Washburn, & Sharp, we always do whatever we can to minimize the financial burden of lien repayment. We may, for example, be able to do one of the following:
Negotiate a Lower Amount
We can always try to negotiate with the health insurance company to reduce the lien amount. Your insurance company may be open to accepting a smaller amount, especially if your settlement or verdict is modest and it’s clear you will need that money for your continued recovery.
Challenge the Lien
While not as common, we can sometimes challenge a lien outright, arguing that it’s invalid or that some of your expenses are not subject to reimbursement.
Legal Protections
Based on Virginia law, there may be caps or limits on what your insurance company can recover from your settlement. We always aim to help you retain as much of your settlement or verdict as possible.
How Can a Personal Injury Lawyer Help?
Dealing with health insurance liens can be one more stressful thing you have to manage on your way to full recovery. Don’t do it alone. Contact us today. We’ve helped many of our clients manage lien issues and still secure fair outcomes. No matter what, we’ll do everything we can to help you recover your damages, as we did for this long-haul tractor-trailer driver who suffered multiple fractures to his leg and wrist due to someone else’s negligence. We helped him recover a $750,000 settlement.
Our offices are located in Virginia Beach, Portsmouth, Hampton, Norfolk, Chesapeake, Suffolk, and Kitty Hawk, North Carolina.