If you know someone who has been in an accident, then you have probably heard about medical liens in Michigan. What is the concept of a medical lien and how does it affect an insurance claim? Let us look at the answers.
No-Fault Auto Insurance In Michigan
Any individual living in Michigan is now subject to no-fault insurance.
Can my insurance company put a medical lien on the proceeds of my insurance?
To be clear, your insurance is entirely separate and distinct from the no-fault insurance of your vehicle. The personal protection insurance benefits are different from the no-fault car insurance benefits.
For patient protection, the no-fault car insurance company cannot claim any kind of medical lien after a car accident in Southfield. According to the law, the car insurance company cannot file for a medical lien after a car accident to get reimbursed from the recovery for the money paid out of an individual’s insurance. The two are entirely separate and distinct.
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.
Are they not the same?
No, even if you get the same insurance company for your no-fault car accident insurance and your no-fault personal protection insurance company, the benefits are different. Hence, the law is protecting you by making sure your insurance company for your vehicle will not take advantage of you and also put a lien on your PIP benefits as if they are only paying themself.
At times, your insurance company might become greedy and try to settle one against the other. In this case, make sure that you get a lawyer who can help you with your claims.
Can my insurance company still get a medical lien?
There are some instances when the auto insurance company may still be entitled and may still be able to seek reimbursement for what has been paid out of your no-fault personal injury protection benefits.
The auto insurance company can get the right to reimbursement through a medical lien in some exempting circumstances. The following are some exempting circumstances:
- When the reimbursement rises from a tort claim from an accident that happened outside of Michigan;
- When the reimbursement is sought from a tort claim brought in Michigan against the owner or operator of the motor vehicle with no insurance at the time of the crash; and
- When the reimbursement is sought from the tort claim brought in the state based on intention harm caused to persons or property.
When should I file for a medical lien after a car accident?
After a car accident, you must file your claim within 1 year after the payment has been received by the claimant. The period is the period that enforces the right of recovery or indemnity or reimbursement.
What are the restrictions on filing for medical lien?
Other than the exemptions when the no-fault insurance company can seek reimbursement from the proceeds of the PIP, the insurance company may also claim from the duplicative PIP benefits. This would mean payments that are made for the economic damages.
If you filed for non-economic damages against the driver at fault, and that is the only thing that has been approved by the court, then the no-fault insurer will not be entitled to reimbursement of the medical lien after the car accident.
Non-economic damages are the compensation awarded by the court for the pain and suffering, the disfigurement from the scarring and surgery, and the physical disability caused by the accident. Payments awarded for non-economic damages may not be part of the medical lien.
Does that mean that the medical lien cannot be enforced on the compensation for my pain and suffering?
Yes, if you have been awarded $25,000 for the actual damages and $100,000 for the non-economic damages, the medical lien may only be applied on the $25,000 and not the $100,000.
Why? This is because while the economic damages were paid for or worked for by those who placed a medical lien, your non-economic damages were suffered only by you. The sleepless nights and the issues that have affected your life are only suffered by the victim claimant and not the company.
Let Haque Law 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 personal injury lawyer 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.
Let us help you out.
If you need a lawyer to help you during your medical lien proceedings, call us immediately. If you have any problem with the law or are seeking justice and truth, our numbers are standing by to take your call