Liens Against Recovery In A Phoenix Motorcycle Accident
Liens just might be the most complicated and convoluted part of the personal injury practice. A lien is a third party's claim for money against personal injury recovery. The recovery is usually against the third party, or liability portion, of a personal injury settlement, but in some circumstances, it could also be recovery against first party proceeds. Third party means you have recovered against an insurance policy other than your own (liability), while first party recovery means you have recovered against your own policy, such as UIM or UM coverage. Arizona generally rules out subrogation (anti-subrogation statute), or the right for a third party to recover for another's injury, but lien rights can be created by state and federal law.
There are essentially four kinds of liens, government liens, ERISA, health care liens, and consensual liens. Government liens usually come up when a government agency has paid for medical bills the result of an accident. For example, if Medicare or the Veteran's Administration or AHCCCS has paid for your medical care and you get some money as a result of the accident, those same government agencies will want to be reimbursed. Generally speaking, government agencies have the broadest rights of recovery. If you work for a large company that is self-insured and has an ERISA qualified health care plan, they will seek reimbursement as well. Health care providers can claim reimbursement, even though they have already been paid by the government or private insurance or if not paid by anyone at all, for at least a part of their full fees. A dirty not so secret fact is that private health insurance pays about 20% of a hospital's "full fee" and medicare about 40%; but when a hospital finds out someone might get some money from a personal injury claim, the hospital will claim the balance against the recovery, even though they would not have done anything if not for the lawsuit. For a hospital to recover against a personal injury settlement, they must comply with the recording provision of ARS 33-931 Health Care provider liens. Consensual liens are created by contract. They are usually the result of treatment by lien.
For example, let's say you riding your motorcycle through the streets of Phoenix and while stopped at a traffic light, you are rear ended. You go to the hospital and need to see a neurologist, but your insurance won't cover it and you do not qualify for government benefits. One thing to do is sign a contract with a neurologist who will defer payment until recovery.
Liens might just be the most important reason to have an personal injury attorney represent you because that could make a bigger difference in how much you recover even more than the size of the settlement itself. Sometime creditors assert invalid liens, and most, if not all liens, can be negotiated down.
Contact a Phoenix, Arizona, Motorcycle Lawyer Today
If you are seeking legal representation or would like more information about our services, contact the law offices of Vladimir Gagic today to set up your free consultation. You can reach us at 602-955-1985, toll free at 855-843-6274 (855-THE MARINE)
