Tag Archives: hospital lien

What is a Subrogation Lien and Why Do I Need to Reimburse My Insurance Company From My Settlement?

What is a Subrogation Lien and Why Do I Need to Reimburse My Insurance Company From My Settlement?

Personal Injury Claim and SubrogationInsurance companies enter into a contract with their insureds. In this contractual relationship, both parties benefit and rightly so. But when your insurance company pays for your loss, they may legally recover a portion, or all of their losses paid on your behalf by way of subrogation.

A subrogation lien is the process an insurance company uses to seek reimbursement from the responsible third party for money it has paid on the behalf of the insured. However, the English common law “Made Whole” doctrine provides that insurers and creditors shall not be made whole prior to their insured being made whole.

Indiana statute IC 34-51-2-19, commonly known as the Lien Reduction Statute, adds teeth and parameters to the common law doctrine. It states in part:

If a subrogation claim or other lien or claim that arose out of the payment of medical expenses or other benefits exists in respect to a claim for personal injuries or death and the claimant’s recovery is diminished:

(1) by comparative fault; or

(2) by reason of the uncollectibility of the full value of the claim for personal injuries or death resulting from limited liability insurance or from any other cause; the lien or claim shall be diminished in the same proportion as the claimant’s recovery is diminished.

Lien Reduction Statute: Recovery Lessened by Comparative FaultCall Charlie Ward at 317-639-9501

If the tortfeasor (party responsible for your damages) proves or is able to prove that you were, for example, 20% at fault for your damages, and your automobile insurance company paid the limits of your medical payment portion of your policy, totaling $10,000, your insurance company would be required under Indiana statute to reduce their medical payment subrogation lien by a minimum of 20% or $2,000. Based on the facts and the full set of circumstances surrounding your claim, a further reduction may be requested by your experienced personal injury attorney.

Lien Reduction Statute: Recovery Lessened by Uncollectibility of Injury or Death Claim

When you have finished treatment with your providers and it is felt that your condition cannot be improved further, you and your attorney will discuss and assign a reasonable value to your claim for damages based upon medical billings, loss of wages (past and future), future surgeries and treatments, impairment rating, pain and suffering and all other losses you may have incurred.

The following is an example of Uncollectibility:

Your claim is reasonably valued at $500,000. You settle for the limits of the responsible party’s liability insurance of $100,000. Therefore, 80% of your claim is uncollectible. In this example, both your auto insurance company and your health insurance company would be required by statute to reduce their lien by 80%. Under extreme circumstances, an experienced personal injury lawyer may be able to negotiate a further reduction of the lien amount or request waiving of the lien.

A Person Who Acts As His Own Lawyer…

In most circumstances it would be imprudent to endeavor to settle a claim for injuries without the advice and counsel of an experienced personal injury and wrongful death lawyer. Attorneys who represent injured or deceased persons on a daily basis are knowledgeable of current legislation, amended statutes, federal codes, and case law that will affect their client’s case and financial recovery.

Don and Charlie Ward have more than 85 years of combined experience in personal injury law involving motorcycle, automobile, bus, trucking and pedestrian accidents and wrongful death claims. Call Charlie Ward today at 317-639-9501 for a free consultation and evaluation of your claim.

Ward & Ward Law Firm
728 S Meridian St
Indianapolis, IN 46225
317-639-9501

Learn more about Indiana’s Comparative Fault Law.

Indiana Hospital Lien Statute – Legislation Benefits Private Health Insured’s Injured in Auto, Motorcycle, Trucking or Semi Tractor-Trailer Accidents Caused by Another’s Negligence

Lawmakers and lawyers working for fairness in IndianaCall Charlie Ward at 317-639-9501

Since the Hospital Lien Statute was amended in 2013, a number of changes have gone into effect that may benefit you if you have a claim for personal injuries and compensation for damages caused by a car, motorcycle or trucking accident. I will discuss the change benefitting the citizens of Indiana called “No Balance Billing.”

Hospitals typically contract with specific Insurance providers to accept their plans. When a patient has health insurance with a hospital approved contracting provider, the treating hospital is bound to honor that contract by accepting the patient’s insurance and billing their services at mutually agreed upon “reasonable fees”. Reasonable fees are predetermined between the hospital and the insurance provider. Anything not considered “reasonable” by the private health insurer is contractually adjusted or written off by the hospital and the patient is only responsible for their deductible, their percentage split or their co-pay.

Prior to July 1, 2013, some hospitals would accept the injured patient’s private health insurance—allowing the insurance provider to pay their contracted amount—and attach a lien to the injured party’s legal claim for the remaining charges. To make matters worse, if the hospital lien could not be satisfied by the plaintiff’s legal claim, the remaining unpaid balance could follow the claimant after judgment or settlement was made.

The original legislation was never meant to hurt accident victims

The original intent of the hospital lien statute served to compensate the hospitals providing treatment for injured victims. Today, as hospitals treat more and more indigent and uninsureds, hospitals are seeking financial compensation that will cover the skyrocketing costs of the medical care our hospitals provide, albeit, the issues outlined above have progressively caused problems for personal injury attorneys seeking justice and wholeness for their injured clients.

New legislation benefits persons injured in a crash

Under the new provisions of the Indiana Hospital Lien Statute [IC 32-33-4-3(b)(5)], the hospital must make reasonable effort to pursue private insurance claims in cooperation with the patient. A lien perfected by the hospital within 90 days of patient discharge must first be reduced by the amount of any benefits to which the patient is entitled under the terms of any contract, health plan, or medical insurance. Most importantly, the lien must reflect credits for payments made by the insurance provider, contractual adjustments and write-offs.

Experienced lawyers helping injured victims

If you have been injured or know someone who has been injured as a result of someone’s negligence, call attorney, Charlie Ward, for a free consultation at (317) 639-9501. The law firm of Ward & Ward has over 80 years of combined experience in personal injury and wrongful death claims including injuries resulting from auto, motorcycle and trucking accidents.

By Charlie Ward

[email protected]

Ward & Ward Law Firm
728 S Meridian St
Indianapolis, IN 46225

 

Medicare Update on Indiana Hospital Lien Statute – Legislation Benefits Medicare Recipients With Personal Injuries

Changes in Hospital Lien Statute Benefit Injured Medicare RecipientsCall Charlie Ward at 317-639-9501

In January I wrote an article about the Indiana Hospital Lien Statute and how it may affect your claim for personal injuries and compensation for damages caused by a car, motorcycle or trucking accident. Since then the Statute was amended and on July 1, 2013 a number of changes went into effect.

History of Hospital Lien Statute and Medicare

The original Hospital Lien Statute became law during the 1930s—decades before Medicare was enacted in 1965. Prior to the 2013 changes in the Indiana Statute, hospitals could elect not to bill Medicare insurance for charges relating to medical treatment rendered to a Medicare recipient who had been injured in an accident through the negligence of another. Today under the new provisions of the hospital lien statute [IC 32-33-4-3(b)(3)(e)], Medicare patients are exempt from the lien.

The Indiana Trial Lawyers Association and the 2013 Indiana General Assembly has taken a stand for the citizens of Indiana and Medicare recipients!

If you have been injured or know someone who has been injured as a result of someone’s negligence, call attorney, Charlie Ward, for a free consultation at (317) 639-9501. The law firm of Ward & Ward has over 85 years of combined experience in personal injury and wrongful death claims including injuries resulting from auto, motorcycle and trucking accidents.