Do I Have to Pay Back My Medical Liens?

Why do I have to pay back my health insurance company for the bills they paid for my accident in Maryland?

Accident victims get understandably frustrated when health insurance companies demand to be paid back after a car accident. The most logical question: "What am I paying my health insurance premiums for?" This article explains how the health insurance company may have an interest in your case in some states....and why it is not quite as big of a deal as you may think.

Overview of Medical Liens

Most car and truck accident victims wisely use their PIP, Med-Pay or health insurance to help with the costs of medical treatment. You are not obligated to pay back your health insurer, generally speaking. If you break you arm playing with you kids in your back yard, your health insurance company is not looking to - nor can it- get paid back. But in many health insurance contracts - and under a legal tradition call subrogation - you insurance company may be able to place a lien on your case that allow them to be paid back out of any settlement. No doubt, it you ran the math on your settlement numbers and did not include the lien, it is disheartening.

The Good News on Liens Medicaid

In many cases, your medical lien is not as much as you think it will be. First, your insurance company is not paying the full freight for all of your medical bills. Let's say you have $100,000 in medical bills. You health insurer is not going to pay the doctors $100,000 because they are going to say the bills are too high and we only accept so much for this type of treatment. So you bills might get cut by let's say 25%. So now you lien is down to $75,000. Good and aggressive accident lawyers will then work hard to negotiate with down you lien? How much? It depends on the case.

So, why it is unfortunate that you have to pay back your medical liens keep in mind that the insurance company is required to pay you back for all of your medical bills, not the reduced amount. So in most case, it is still a winning hand for the injured victim on the issue of how much compensation they get verus how much they have to pay back with respect to the medical bills.

Also, and we can't emphasis this enough, make sure you know your state's laws with respect to liens. Some do not allow subrogation on medical liens in some case regardless of what your medical insurance contract says.

Getting a Lawyer to Fight to Get You the Most Money Possible

Our Maryland personal injury attorneys handle car and truck accident, product liability and medical malpractice cases in Maryland and, in particularly serious cases, throughout the country. If you have been injured by a defective product, medical malpractice, truck accident, car accident, or motorcycle accident, call to speak to one of our malpractice or accident attorneys at 800-553-8082 or select here for a free no obligation consultation.

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