If you know someone who has been in an accident, then you have probably heard about medical liens in Michigan. In previous articles, we have discussed medical liens in Michigan. The article entitled Work-Related Car Accidents in Michigan discussed work-related car accidents in Michigan and what you need to do if you ever get the unfortunate event to happen to you. The article An Introduction To Medical Liens in Michigan gave you an overview of what medical liens are in Michigan. The article The Law On Medical Liens In Michigan discussed the law on medical liens in Michigan.
As we continue our topic on medical liens, we delve further into the topic. Here at Haque Legal, our personal injury lawyers in Southfield attempt to provide you with as much information as possible to help you out with your claims. With that, let us look at medical liens as well as revisit some of the information that we have already shared with you.
What is a medical lien?
As we have previously discussed, a medical lien is a written agreement between an individual or company who worked on a patient after a car accident and the patients who agree to pay for the services of a doctor out of any insurance benefits settlement or award that they will receive.
What is the rule for a medical lien?
The rule for a medical lien after a car accident is simple: your no-fault auto insurance company will not be entitled to reimbursement from the victim’s tort claim recovery for what you will receive from the no-fault personal protection insurance benefits.
What, then, is this right of subrogation?
If you have attended many court proceedings or some settlement discussions on medical liens, then you have heard of the right of subrogation.
The right of subrogation is the right of one individual to substitute another for the latter’s rights and claims in the insurance process. In a car collision, it is the right of the victim of the accident that is subrogated to the insurer for recovery of the claim. This is what happens when the insurance pays for the medical bills of the claimant, it is the insurance who has the right to go after the driver at fault.
How does the new No-Fault law Affect the Health Insurance Lien?
You already know that the no-fault law has been completely changed in 2019. Before 2019, the health insurance liens had no real impact on auto accident victims.
While the old law requires that car collision victims seek the payment of their medical expenses from their no-fault insurer, this has changed now. In the old law, it was obvious that the medical expense benefits were to be paid by the no-fault insurer for the lifetime of the victim and the drivers at fault would just sit back and were not liable to pay for the injured party’s medical expenses.
This was embodied in the Supreme Court ruling in American Special Risk Ins. Co. v. City of Centerline, 69 F.Supp.2d 944 which provides that: “An insurer cannot recover from its insured for a loss covered by the policy.”
Previous to 2019, the no-fault insurer will not be permitted to bring the suit for medical expenses against the negligent driver for the expenses of the victim’s recovery. These rules, however, have changed.
Now, if the personal protection insurance benefits have already been received by the party, the claimant shall repay the insurers for the recovery of the amount equal to the economic damages and costs.
How does the insurer recover nowadays?
For the insurer to recover, they now have a right to apply for a medical lien. The medical lien ensures that the insurer will be able to recover from the economic damages awarded by the court to the claimant.
What can you recover from the medical lien?
When the court awards economic damages, the insurer becomes entitled to an equal share of the economic damages that is equal to the total expenses incurred by the insurer for the recovery of the individual involved in the car collision in Michigan.
What if there are many medical liens?
If there are many medical liens on the claimant, every person with the medical lien will have a pro-rata share of the proceeds of the medical lien. This will be computed based on the contribution of the party to the healing of the claimant.
Is Workers Compensation Considered A Lien?
Worker’s compensation benefits are chargeable to the personal injury protection of the person involved and not on the recovery judgment as in the medical lien.
Can there be subrogation for the non-economic damages awarded to the claimant?
No, there cannot be subrogation for the non-economic damages that are awarded to the claimant. Only the economic damages can be subrogated to the rights of the insurer. Even so, the insurer cannot claim all of the awards if some other medical liens or parties filed for the recovery of expenses relating to the accident.
Let Haque Legal Help You With Your Claims
Now that you know some facts about dealing with medical liens in Michigan it is time to get down to it. If you require a Southfield accident attorney who can assist you with ensuring that you protect your rights to your property, it is important to know that you also have a team that can help you out with your specific needs.
Our law firm is dedicated to making sure that those who are innocent will be protected by the law and the full extent of justice will be used.
The article that you have read is based on general applications of the law. It is not legal advice and it is not to be construed as any legal consultation with the firm. No client-attorney relationship is created when you read the articles we have provided.
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