In most cases, yes. In Maryland, medical bills and expenses related to the treatment of an injured victim following an auto accident must be paid from any insurance settlement or collected court judgment. Any medical claims must be paid prior to the victim receiving the proceeds of the settlement or judgment. Thus, for example, if the settlement is $1 million, the medical providers will receive payment for their invoices — let’s say $200,000 — prior to the victim receiving any amount. In practice, if the matter is settled through insurance, the insurance company involved will write separate checks for the medical expenses and the check for the victim. The main exception is where the medical bills/expenses have already been paid either by the victim, some third party, or another insurance carrier. However, the third-party payor or the other insurance carrier will demand payment from the settlement/judgment before payment is made to the injured victims.

The process involves what are known as “medical liens.” A “lien” is essentially a document stating that a person or business has a claim for payment. Thus, a medical lien is a claim for payment related to medical expenses. A lien also relates to some source of payment or value. A business lien, for example, might be a claim for payment on a loan attached to the inventory of the business. The inventory cannot be sold without paying the lien.

A medical lien is similar, except the claim is attached to any insurance settlement or court judgment that is obtained related to the Maryland car accident. Accident claims and medical liens are legally complex. So, injured victims should hire trusted and highly-rated Maryland auto accident attorneys. For more information, contact us here at the Law Office of Robert Castro. Use our contact page or call us at (301) 870-1200. We are top-rated Maryland car accident attorneys with offices in Waldorf, Maryland. We understand medical liens. Below is some additional information.

In Maryland, there are some formal steps that must be taken by medical providers to make their liens valid and enforceable. First, any medical lien must be asserted by a healthcare provider, like a hospital, physician, therapist, etc. Second, the lien must be for a specific amount and must be for medical services or products (like medication and/or necessary medical devices). Third, a medical provider must make a formal notice of the lien. This must be sent to the victim who received the medical services/products. The Notice of Lien must also be sent to any attorney representing the victims, and also any insurance company involved. Finally, medical liens for hospitals must be recorded with the local county recorder’s office.

If a properly documented medical lien is not paid from the settlement or judgment amount, the medical facility can sue the business or company disbursing money from the settlement or judgment. This is often the lawyer’s office representing the victim, but it can be an escrow firm or the insurance company making payment.

Contact Waldorf, MD Personal Injury Attorney Robert Castro Today

This article has been provided by the Law Office of Robert Castro. For more information or questions, contact our office to speak to an experienced Maryland personal injury lawyer at (301) 870-1200. We are Waldorf, MD, Personal Injury lawyers. Our address is 2670 Crain Highway, Waldorf, MD 20601.