What is a medical lien?
A medical lien is a claim for repayment that is placed against an accident victim’s personal injury case. Essentially, a medical lien gives a medical provider the right to be repaid for its services from any settlement, judgment or verdict awarded in a personal injury lawsuit to the accident victim. The lien is created by a form authorizing the medical provider to place a lien in the event the insurance company denies the provider’s no-fault claims for the patient. The denial may be due to:
- Lack of coverage for reasons such as fraud or material misrepresentation;
- A policy violation, such as a failure to appear for two IMEs; or
- The exhaustion of the policy’s benefits.