Plaintiff Attorney Legal Information CenterThis is a sample letter seeking a reduction in a medical lien.
Plaintiffs’ lawyers correctly focus on maximizing the value of a case by seeking the largest possible settlement or verdict. But in many injury claims, getting a payment reduction in the medical bills or medical liens makes all the difference in the final compensation payout. So our lawyers fight hard on our lien reduction request to maximize the amount of money the client puts in her pocket.
Here is the letter:
Sample Medical Lien Reduction Request Letter
June 28, 2024
Steam Fitters Local #2452l
Ms. Courtney Morzaria
4413 Philadelphia Road, Suite B
Baltimore, Maryland 21237
ATTN: MEDICAL RECORDS
*Practice Tip*
If you want a larger than typical reduction because of extenuating circumstances, don’t delegate the task to even the most competent paralegal or associate. Your best chance at success in getting a lien reduction is to have the highest person on your law firm’s food chain making the call. Why? Because it underscores just how important and necessary the reduction is.
Our Client: Mandy Dennison
Date of Loss: 1/132021
Account No.: 264352197
Dear Ms. Reinsfelder:
It was a pleasure speaking with you today. As we discussed, we represent a charming young lady, Mandy Dennison, in a case for personal injuries involving an automobile accident on January 13, 2023.
As a result of her crush injury to her left foot and fibula in this car wreck, Many will never be able to walk again without assistance. She also suffered cervical discectomy and fusion at the C5-C6 level. My understanding is that her current lien amount is $238,320.00.
The neurosurgeon that performed her surgery is Dr. Katz, and he believes that her second surgery and her follow ongoing physical therapy is NOT related to the crash. His opinion is that following her surgery, only 6-8 weeks of therapy would be accepted as related to the crash. I calculated that amount to be a little less than $30,000. We would request that this amount is taken off the lien, leaving the amount in question to be $209,359.26.
The initial offer was $250,000.00, which was made at a mediation in April 2021. We attended a pre-trial in Frederick County on May 14th and the offer was increased to $500,000.00. Our counter demand was $1.3 million. Since then, the Defendants have increased the offer to $550,000. The trial date is scheduled for July 25, 2024, which is only four weeks away. Our firm has invested $83,400.13 in prosecuting this case and the expenses continue to increase daily with preparation for trial.
More Settlement Lien Information
Below is specific information on getting reductions in medical lien and bills:
We are requesting that you reduce your lien an additional $150,000 to $59,359.26.
This is a significant reduction. We ask for the reduction for two reasons. One, there is a real risk of getting no recovery at all at trial. Liability is strongly disputed in this case.
In Maryland, if the defendant shows that Mandy is 1% responsible for this car wreck, she loses and you would recover nothing. Moreover, we are in a conservative jurisdiction, Frederick County. The judge admonished my clients and told them that “the lucky people get their medical expenses back.”
The judge has been on the bench in Frederick County for 18 years and has presided over numerous personal injury cases, and says most Plaintiffs walk away very disappointed. I don’t entirely agree with the Judge and I think Mandy will make a special witness. But her point is well taken.
The second, Courtney, is more human. As you know, Mandy will suffer from these injuries for the rest of her life. She has, as you also know, stood strongly behind this union for most of her adult life. We are asking her union to stand behind her now in her time of crisis.
I look forward to hearing from you.
Very truly yours,
Laura G. Zois
/slh
Tips for Plaintiffs’ Lawyers on Reducing Client Liens
Reducing liens is a crucial aspect of maximizing your client’s net recovery in personal injury cases. Sometimes, it is the most important thing you will do for the client. Here are some practical tips to help you effectively negotiate and reduce liens on your client’s settlements:
First, it’s essential to understand the types of liens that may be involved in your case. These can include medical provider liens, health insurance liens, Medicare or Medicaid liens, and worker’s compensation liens. Each type of lien has different rules and regulations governing its negotiation and reduction – and statutory requirements for automatic reductions – so familiarize yourself with the specifics of each.
Begin by gathering all necessary documentation. Ensure you have detailed medical records, billing statements, and payment summaries. This documentation will be crucial in negotiating with lienholders and demonstrating why a reduction is warranted. Be prepared to highlight discrepancies, such as overcharges or services not related to the injury claim, to strengthen your position.
Ironically, of course, you position is that your case is not very good and their is a real risk going to trial which is why you are making the reduction request. That needs to be made clear to the lienholder when asking for a lien reduction. They are often “bird in the hand” types that are receptive to the risk of a low or zero verdict at trial.
Communication is key when dealing with lienholders. Start negotiations early and maintain clear, consistent communication throughout the process. Explain the circumstances of your client’s case and the settlement outcome. Emphasize the need for a lien reduction to ensure your client receives fair compensation. These adjusters talk to so many people every day. Distinguish yourself by being an actual human being when talking to them.
Another effective strategy, while we are taking about presenting things in human terms, is to really explain the hardship your client may face if the lien is not reduced. Many of these adjusters will roll their eyes. But not all do. Highlighting the financial burden and potential impact on your client’s life can be a persuasive argument for lienholders to consider a reduction.
Related Articles and Samples
- Return to Sample Attorney Letters
- Looking to Refer Your Personal Injury Case? (Miller & Zois splits fees with co-counsel consistent with Maryland Rule 1.5(e) with lawyers in Maryland and around the country)
- Sample Demand Letter #1
- What Can I Expect for a Settlement Payout? (how lawyers and juries determine compensation amounts)
- Handling Your Personal Injury Claim Yourself (if you are trying to proceed yourself without a lawyer – arguably, foolishly, but maybe not)
- Personal Injury Attorney Help Center (guide for lawyers handling personal injury cases – includes sample depositions, trial transcripts, complaints, interrogatories, etc.)