What Is Medical Lien Resolution or Health Plan Lien Resolution?
Medical liens result from the principle of subrogation, which occurs when a third party takes on another party’s legal claim to money owed for debt or damages. While subrogation entails one party actually entering into a the injured party’s case, most often what happens is that the entity with the right of subrogation also has a right of reimbursement of paid medical bills. Under this principle, a health plan sets forth a lien on a liability or workers’ compensation settlement or award. Their goal is to receive reimbursement for paying for injury treatment that the party responsible for causing the injury should have paid.
For instance, someone injured in a car crash could face thousands in medical bills, which their health insurance would cover. If the injured party sues or brings a claim against the at fault party for negligence, the health plan would place a lien on the lawsuit’s settlement proceeds to recoup the money spent on the injured individual’s accident related care. Medical lien resolution is the process of satisfying these claims fully and at the lowest expense to the settlement beneficiary.
Lien resolution companies like Medivest work on behalf of clients to investigate subrogation claims for validity and establish what charges are legitimate. Our lien resolution specialists also have extensive knowledge and negotiation skills to request available reductions and work hard to reach a compromise with lienholders like the health plan in our example. As a result, we’re often able to meet the needs of injured party and the health plan(s) and secure larger net settlements for clients.