When you get injured in an accident and have no insurance, you can risk going bankrupt paying for necessary medical bills. Even if the injuries happened because of neglect from someone else, you are still responsible for your medical bills. Med lien financing offers financial support to access medical care as you wait for your settlement. Below is what you should know about med lien financing.
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Definition of Medical Lien Financing
A medical lien is a binding contract or agreement between a patient and the healthcare provider. The agreement helps the healthcare professional to place a request to recover funds owed for treatment. The doctor treats the patient on credit until their case gets settled.
Medical lien financing is a type of cash advance or pre-settlement financing that helps plaintiffs to cover their medical expenses. The financing is mainly offered for personal injury cases.
Medical lien financing gets paid directly to hospitals, surgery centers, and healthcare providers. You benefit by getting the rehabilitation, surgery, or treatment you need. A person has to apply for pre-settlement legal funding, and once approved, the funds will get deposited in your bank account. You are in charge of how to use the finances.
How Medical Lien Financing Works
Medical lien financing is appropriate if you’re struggling to pay existing medical bills. Personal injury cases can take several months or years to settle or to deal with in court. You may need continuing care to recover from the injuries fully.
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Medical lien financing can help pay for your medical expenses if you lack insurance or have a highly deductible health plan. The funds are useful when the insurance company doesn’t want to pay for the care you deserve.
No interest, co-pays, or bill collectors will disturb you with phone calls. You will get the medical care and treatment you need without spending money out of your pocket.
Individuals Who Can Issue a Med Lien
Anyone who makes the payment for your medical expenses before settling has the right to issue a medical lien. Each state has different rules on parties that can issue medical liens. In most cases, such parties include:
- Medical providers and hospitals
• Insurance companies that pay for medical costs
• Governments
• Worker’s compensation funds
These parties can pay for your medical expenses as you wait to settle your injury claim. Some can issue a medical lien, but some states restrict who can give out a medical lien and the amount. Talk to your injury attorney as soon as someone has issued a medical lien on your injury settlement.
Perfecting a Lien
The medical provider gets paid first before the case’s plaintiff or patient when the settlement is over. Once the healthcare provider signs the contract, they will identify all parties involved and send them a notice of the debt. The process is known as perfecting the lien and acts as an agreement that the lien holder will receive payment first from the settlement or verdict.
All the parties (insurance companies, attorneys, and the patient) will get a written notice to perfect the lien. The notice can include the following information:
• Description of the services offered and the amount of debt
• Acknowledgment of responsibility for the debt by the person injured
• Agreement that the party injured will pay the debt after getting the settlement
Information Required
- Amount of the healthcare
• Dates of services rendered by the healthcare provider to the patient
• Name and address of the healthcare provider and patient
In cases where the lien holder is not an ambulance company or hospital, they must provide the names and addresses of all firms or persons and their insurance carriers. All those that the injured person claims to be liable for the injuries requiring medical transportation and treatment should be included.
Amounts Taken by the Healthcare Provider
A medical lien is legally binding, and the healthcare provider has the right to get the entire amount of the lien. There is no limit on the lien, even though most states limit how much the insurer can repossess from the settlement.
Contracts are negotiated to favor the victim. Find a medical provider who will offer a favorable agreement and can alter the lien if you fail to get your injury settlement as planned.
Finding a Med Lien Financing Provider
Look for a med lien financing provider who can offer funding to cover medical treatment and care and other related costs. They need to tailor their solutions to work in your favor to get the best settlement and medical results. Prioritize a company that offers medical lien financing for a wide range of services.