Injuries. They can cause someone great inconvenience. For other people, it could be serious enough that they question if they will ever be the same again.

Unfortunately, this happens all too often in the United States. There are at least 62 million people per year that require medical attention for injuries in this country.

If you or a loved one are one of those people that got hurt, you may be in a tough financial situation with your medical bills. Luckily, you do have the option of getting a medical lien.

What is a medical lien? How can having a medical lien benefit you? This is your guide.

What Is a Medical Lien?

Before we can discuss medical lien settlements, you need to understand what a medical lien is.

This mainly comes into play when you have financial difficulty paying off a hospital bill. A medical lien is when a doctor agrees to hold off on your medical bill until a personal injury case has concluded.

For this type of agreement to be legally binding, there has to be something called a Letter of Protection. That gives a doctor legal assurances that they are able to get the money that you owe in any way possible.

If you do not have the ability to pay for it or insurance refuses to cover your entire bill, this can be an alternative for those that have a personal injury case pending. So, you could go ahead with your case, and instead of just owing your lawyer a contingency fee, you will also owe your doctor whatever you agreed upon.

In this agreement, the letter should note exactly how much someone owes their doctor when they agree to a lien. This can be anything from a flat fee for the rest of the bill to an agreed upon percentage of a future settlement.

You Can Negotiate the Medical Lien

One thing that you should know is that it is possible to negotiate a medical lien that you try to attach to a personal injury case. This is not always easy but with the right terms, you may find yourself getting a reduced rate.

This can be done by varying factors. Some doctors are willing to be a little more lenient to those with financial difficulty.

Others may be willing to gamble on a percentage of the settlement rather than asking for a flat fee. Then, there are some doctors that keep it simple and just ask for the remainder of the bill that you owe.

Whatever way you reach an agreement, just know that there is usually no harm in trying to negotiate a lien down to a reduced rate.

It Can Weaken a Personal Injury Case

Something important to note is that depending on your opposition, it can weaken a personal injury case if you have a medical lien with your doctor. The reason for this is that in the eyes of an insurance company, a doctor has just as much to gain from a settlement as you do.

So, they may publicly question how unbiased a medical professional can be in that situation.

Insurance companies will fight for any dollar that they do not have to provide to someone. Health insurance companies pay around $1.1 billion in rebates alone.

So, what does this mean? It means that insurance companies have a lot to lose if they let every personal injury case slide.

You have to be prepared for an insurance company to throw the kitchen sink at your case. That includes trying to go after your credibility and anyone else’s credibility, such as your doctor, that is trying to help with your case.

You Have to Pay if You Lose

Finally, you need to remember that winning a personal injury case is not a guarantee. Your medical lien is likely riding on you winning the case.

But what happens if you lose? In that situation, you are going to have to find another way to pay your medical bill.

The reason is that when you enter into this type of agreement, it legally binds you to pay off your medical bill. In most cases, doctors will make sure the language of the contract states that you have to pay no matter what the result of your case is.

So, what happens when you lose and you do not have the settlement money you were expecting to pay your doctor? This is when planning for a rainy day is important.

Until you know you won your case, you should put some money to the side in the event that you lose your case. Know how much you would owe the doctor in that situation.

Your case will likely take months, so it should give you time to build up some sort of nest egg in case you lose. Have an insurance plan in case a settlement does not go in your favor.

Get a Medical Lien

These are some of the biggest things that you should know before you get a medical lien. It is important that you know that you have options when it comes to negotiating how much this lien is going to be.

Also, you need to be aware of what insurance companies are willing to do to avoid settling with you. That means attacking your credibility, so you need to be prepared for the event that you lose your personal injury case.

Do you need a doctor that accepts medical liens? Find your doctor here.