Many times, when a lawyer for a personal injury victim settles his or her client’s personal injury case, the health insurer will ask for a significant portion of the settlement for reimbursement of expenses which it incurred in paying for health care. This is known as “subrogation” or a “right of reimbursement.” Repeatedly, I have seen cases where good attorneys pay back liens that do not even exist, or they pay back way too much. Paying back liens that don’t exist, or paying back too much is a disservice to our clients, and can be considered malpractice. The law on health insurance liens is complicated and requires experience to unravel.
Many times, personal injury attorneys will recommend that their clients hire The Nation Law Firm to negotiate liens on behalf of the personal injury victims. This removes any potential liability from the personal injury attorney, and provides a much needed service to their clients.
Recently, a prominent local personal injury law firm asked me to deal with a $192,000 ERISA health insurance lien on a case they had settled. That firm had attempted to negotiate with the lien-holder to reduce the lien, but the lien-holder would not budge. The personal injury victims retained me, and I filed a declaratory judgment action in the United States District Court, for the Middle District of Florida. Soon after the initial Rule 26 meeting, the lien-holder agreed to accept $10,000 as payment in full for their lien.
I am currently in litigation in numerous such declaratory judgment actions at this time.