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What Is The California Medical Lien Law?

Crucial Things You Need To Know About Medical Liens In California

Health care is expensive, so what should you do if you don't have enough money to cover your injury-related expenses upfront? Accidents can have a considerable influence on your body and health. Documentation of your injuries from a hospital or medical facility might help prove your claim if you consider legal action or expect compensation from an insurance company.

However, how can you pay for these expenses while you and your California personal injury lawyer wait for a private settlement or a court decision?

medi-cal liens in personal injury cases

Medi-Cal Liens In Personal Injury Cases

By permitting aggrieved parties to employ medical liens, California law provides a remedy for the potentially exorbitant expenditures of health care. In brief, medical liens allow patients to avoid paying for services upfront and instead utilize the settlement to reimburse the hospital or medical personnel.

Depending on the care you receive type and location, these liens may be statutory or contractual. For example, you can seek emergency medical assistance at a hospital following your accident and use a hospital lien to settle the charges.

In a vehicle accident, the hospital sends a written notice to the responsible party or insurance company. The hospital is named a payee of a portion of your settlement in this notice.

medical lien california

If you intend to employ a contractual medical lien, inquire about your selected doctor's or specialist's readiness to accept this payment method. However, it may be challenging to locate a doctor who will agree to a contractual medical lien because of the long time frames involved in injury claims and the possibly high expense of medical treatment.

However, after finding a doctor who would accept this kind of payment, you'll need to sign a lien agreement to complete the process.

Medi-Cal Liens On Settlements

If your accident-related medical care expense warrants a medical lien, you'll want to know how this will affect your net settlement amount. In most circumstances, the defendant or their insurance provider will pay the hospital or doctor. However, their compensation is restricted to the reasonable and necessary cost of their supplied services.

If your health insurance pays for any or all of your treatment, they may be entitled to compensation if the medical care they paid for is covered by your settlement. However, the amount of money your health insurance can claim from your accident settlement is limited by the California Civil Code. Therefore, it varies depending on the facts of your case.

Medical liens, despite their complexity, can be beneficial to the injured parties. They enable you to put your health ahead of any financial concerns that may prevent you from receiving vital care.

Is There A Statute Of Limitations On Liens In California?

The Medicare lien statute of limitations in California is usually four years after the debtor fails to keep their agreement to pay.

However, many lien agreements state that if the debtor does not pay, the debtor must hold any settlement money in trust for the medical provider. There is no statute of limitations in these situations, and the debtor can be sued.

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Do you have questions about medical lien in California? Our prescreened Personal Injury Lawyers in Los Angeles have helped multiple plaintiffs get the payouts and representation they deserve.

We make sure you're matched up with a lawyer with the right expertise, experience, and reputation. You may contact us via our 24/7 live chat (or our case submission form) for a free initial consultation.


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