How a Medical Lien Affects Your Personal Injury Settlement

Medical treatment after a car accident, slip and fall, truck crash, motorcycle accident, or any other injury in Florida can be expensive. When bills start arriving before your case settles, you may feel overwhelmed. Many injury victims are surprised to learn that hospitals, doctors, health insurers, or government programs may place a medical lien on their personal injury settlement.

A medical lien can significantly impact how much money you take home — and failing to resolve one properly can delay or even jeopardize your settlement. Understanding how medical liens work is essential to navigating the personal injury process in Florida.

At Kogan & DiSalvo, we help clients manage medical liens every day and work to reduce those amounts so injury victims keep more of their settlement.

What Is a Medical Lien?

A medical lien is a legal claim by a healthcare provider or insurance company seeking reimbursement for medical treatment related to your accident.

Essentially, a lien ensures they get paid out of your future settlement.

Common parties who file medical liens include:

• Hospitals
  
• Emergency medical providers
  
• Orthopedic surgeons
  
• Physical therapists
  
• Chiropractors
  
• Health insurance companies
  
• Medicare or Medicaid
  
• VA healthcare providers
  
• Workers’ compensation carriers
  
• Medical financing companies (like CareCredit or MedPay providers)
  

Florida law allows these entities to secure a lien so they can recover what they paid on your behalf.

Why Do Medical Liens Matter?

Because they reduce your final settlement amount.

If you settle for $100,000 but have a $30,000 medical lien, that lien may be deducted from your settlement before you receive your share. However, medical liens are often negotiable — and skillful negotiation can significantly affect your net recovery.

This is one of the most important areas where having an experienced personal injury attorney truly makes a difference.

Types of Medical Liens in Florida Personal Injury Cases

Not all liens work the same way. The type of lien determines how it’s handled, how much must be repaid, and whether reductions are possible.

1. Health Insurance Liens

Private health insurers often seek reimbursement for medical bills they paid. These liens are governed by contract language and state/federal law.

Kogan & DiSalvo frequently reduces these liens by:

• Challenging unrelated charges
  
• Correcting billing errors
  
• Negotiating hardship reductions
  
• Applying Florida’s “made whole” doctrine (in some cases)
  

2. Medicare Liens

Medicare has a legal right to reimbursement for accident-related medical care. These are known as Medicare conditional payments.

Medicare liens must be handled very carefully because:

• They have strict reporting requirements
  
• They require official “final demand” letters
  
• Your case cannot close until Medicare is paid
  

Failing to resolve a Medicare lien properly can lead to penalties.

3. Medicaid Liens

Medicaid liens are governed by federal law, and the state must be reimbursed for accident-related treatment. However, Medicaid liens can often be negotiated or reduced based on:

• Fault percentages
  
• Settlement structure
  
• Limited recovery
  

4. Hospital and Provider Liens

Some Florida hospitals file statutory liens under local ordinances. Others create liens by contract when you sign intake paperwork.

These liens may cover:

• Emergency room treatment
  
• Imaging (MRI, CT scans, X-rays)
  
• Surgeries
  
• Follow-up appointments
  

We often challenge excessive or unreasonable charges, especially when uninsured rates far exceed standard insurance rates.

5. Workers’ Compensation Liens

If your injury occurred on the job but a third party is partially at fault — such as a negligent driver or a defective product — workers’ compensation may file a lien.

These liens are also negotiable and depend on multiple factors, including comparative fault.

6. Medical Funding/Lending Company Liens

Some injury victims sign “letters of protection” (LOPs) or receive third-party funding for medical care. These companies typically seek repayment from any settlement.

These liens can be challenging, but skilled negotiation can significantly reduce them.

Need help managing medical liens? Let’s talk.

Kogan & DiSalvo is here to guide you through every financial and legal detail of your injury claim.

How a Medical Lien Impacts Your Settlement

Example Scenario

Let’s say:

• Your settlement is $250,000
  
• Your attorney fees and costs total $85,000
  
• Medical liens total $60,000
  

Without negotiation, you would receive $105,000.

With negotiation, your liens could be reduced to $30,000 — increasing your net recovery to $135,000.

This is why managing and negotiating medical liens properly is so important.

Can Medical Liens Be Negotiated?

Yes — almost all medical liens can be negotiated.

Kogan & DiSalvo works to reduce liens by:

• Challenging unrelated or duplicative treatment
  
• Disputing unreasonable hospital charges
  
• Applying hardship arguments
  
• Using Florida’s collateral source rules
  
• Applying federal reduction formulas (Medicare/Medicaid)
  
• Demonstrating limited ability to pay
  
• Showing insufficient settlement funds
  

Reducing liens can increase your final recovery by thousands of dollars.

Can You Ignore a Medical Lien?

No. Failing to resolve a lien can lead to:

• Delays in receiving your settlement
  
• Debt collection
  
• Damage to your credit
  
• Future legal action
  
• Medicare penalties
  
• Medicaid recovery claims
  

Your attorney must resolve all liens before you receive your portion of the settlement.

What Is the Difference Between a Lien and a Letter of Protection (LOP)?

A medical lien is a legal claim filed by a provider or insurer.

A Letter of Protection is an agreement between you and a provider stating:

• They will treat you without upfront payment
  
• They will get paid from your settlement
  

Providers who accept LOPs often charge higher rates, making negotiation critical.

Does PIP (Personal Injury Protection) Affect Medical Liens?

Yes. In Florida, PIP pays up to $10,000 of your initial medical expenses. Medical liens usually apply after PIP is exhausted.

If your PIP coverage does not fully pay the provider, they may file a lien for the remaining balance.

How to Avoid Excessive Medical Liens

While accidents are unpredictable, the way medical bills are handled afterward can make a major difference.

Tips include:

• Use your health insurance whenever possible
  
• Avoid unnecessary or unapproved treatments
  
• Keep track of all bills and EOBs (Explanation of Benefits)
  
• Tell your providers you are represented by Kogan & DiSalvo
  
• Avoid calling billing departments yourself — this can complicate negotiations
  

Your legal team will help coordinate your care and protect you from unnecessary liens.

Kogan & DiSalvo has helped injury victims throughout South Florida recover more by reducing medical liens. We can help you, too.

How Kogan & DiSalvo Handles Medical Lien Negotiation

Our approach includes:

• Reviewing all bills and lien notices
  
• Confirming which charges are accident-related
  
• Disputing inflated or duplicate charges
  
• Negotiating aggressively for reductions
  
• Resolving Medicare and Medicaid compliance
  
• Ensuring timely communication with lienholders
  
• Finalizing liens so your case closes smoothly
  

We fight to maximize your net settlement so you can focus on healing and rebuilding your life.

Call Kogan & DiSalvo Today

Medical liens can dramatically affect your personal injury settlement, but you don’t have to handle them alone. The sooner you speak with an attorney, the more options you may have to reduce what you owe.

Call Kogan & DiSalvo today for your free consultation. Your recovery starts with a call — and when results matter, we deliver.