Understanding Personal Injury Liens in Louisiana

Many injury victims are unaware that when they receive compensation for their injuries through a personal injury, the insurance company that initially covered their medical costs may impose a lien on any funds recovered. This is called subrogation, and it allows your health insurance company or another entity to recoup the expenses it incurred for your healthcare. 

It’s important to be aware of this process, as it can impact the compensation you ultimately receive. The good news is that with the guidance of an experienced personal injury attorney, you can skillfully negotiate your liens to maximize your settlement.

If you are unsure if you have an outstanding lien, want to learn how a lien affects your personal injury settlement, or need to negotiate your liens, contact a Louisiana personal injury lawyer to arrange a complimentary consultation.

What is a Lien in a Personal Injury Case?

A lien in a personal injury case is a legal claim or interest that a third party holds on the proceeds of your settlement or compensation. Third parties can include medical providers, hospitals, health insurance companies, and government agencies who provide you with services or financial assistance related to your injury.

Common types of personal injury liens in Louisiana include:

• Medical: Medical liens, typically claimed by healthcare providers, hospitals, or medical facilities that have treated your injuries, enable these entities to receive a portion of your settlement.

• Health insurance: If your health insurance covered medical expenses for your injury, the insurance company may place a lien to reclaim the amounts they paid on your behalf.

• Medicare and Medicaid: Government healthcare programs like Medicare and Medicaid may place liens on your settlement to recoup the funds spent on your medical care.

• Workers’ compensation: If your injury happened while you were at work, your employer’s workers’ compensation insurance may place a lien to recover the benefits provided to you.

It is important to note that a lien doesn’t give the lienholder a right to your entire settlement! Your settlement usually comprises compensation for medical expenses, lost wages, and pain and suffering. A medical lien only entitles the lienholder to whatever portion of your medical expenses they’ve already paid, and no more.  

How Do You Know If You Have a Lien?

Not all liens are the same; some hospitals and health insurance providers issue statutory liens while others file perfected liens. Your lawyer can help you identify any liens that need to be paid before you can receive your funds after a settlement or judgement.

Failing to pay back your accident-related medical expenses could result in the loss of your benefits, or even make you the defendant in a resulting lawsuit around repayment! Hiring an experienced personal injury lawyer can take the stress of this off your shoulders.

How Liens Affect Your Personal Injury Settlement

When a lien is attached to your personal injury settlement, it affects how the settlement funds are distributed. You must pay back the lien before receiving the remaining settlement money.

This isn’t as stressful or as difficult as it may sound. Upon receiving your damage award, typically your attorney will pay off the liens from the total amount on your behalf before disbursing the remaining funds to you. This ensures you meet all legal obligations without needing to take any action on your own. During this process, your attorney may be able to negotiate with lienholders to reduce the amount owed, helping you increase your take-home settlement.

Work With Our Knowledgeable Personal Injury Team at Dudley DeBosier

Understanding personal injury liens in Louisiana is essential for anyone pursuing a personal injury claim. Being informed empowers you to protect your right to fair compensation.

If you have been injured in an accident, speak with an experienced personal injury attorney at Dudley DeBosier. Don’t let liens reduce the compensation you deserve—contact Dudley DeBosier today for legal guidance and support in your accident case.

Disclaimer: This content has been reviewed by Chad Lederman, Director of Legal Operations at our New Orleans office.

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