Table Of Contents

Medical Liens In Arizona Personal Injury Claims

The last thing an accident victim should have to worry about is how they are going to pay for their medical expenses. But doctors, nurses, and other medical professionals don’t work for free. It is no secret that health care is enormously expensive in the United States. So when a person is injured in an accident and a personal injury claim seems likely, their health care providers will often accept payment in the form of medical liens. Medical liens are promises to pay back medical bills after funds from a lawsuit have been received. When a plaintiff receives a settlement or award by trial for their injuries, medical liens are paid from that sum. But a plaintiff’s goal is to keep as much of their award as possible. Our firm fights to get our clients the high payouts they deserve at a contingency rate that is competitive with other firms in the area. Schedule your free consultation with Arizona personal lawyers today at 480-470-1504 for more information.

Arizona Revised Statutes Section 33-931

A.R.S. § 33-931 is Arizona’s law that allows for the establishment of medical liens. Any licensed health care provider or hospital treating an injured plaintiff can record a lien against the patient’s claims of liability. Under this statute, hospital liens have the highest priority over all other medical liens. They are the only type of health care provider that can issue a lien for less than $250. Because medical liens are for third-party liability claims, they don’t attach to health care insurance benefits or UM/UIM insurance coverage benefits.

The Perfected Medical Lien

Arizona law requires that a medical lien be “perfected” to be considered valid and enforceable. You can see for yourself in A.R.S. § 33-932. Medical liens must be recorded within 30 days of the patient receiving treatment. Health care providers can also record a medical lien before rendering care. The only exception is hospitals- hospitals can record a medical lien within 30 days of a patient being discharged, which could be a significant amount of time after certain procedures were performed. To record a lien, the health care professional should provide a statement with their name and address, the patient’s name and address, the dates or range of services provided, and the amount claimed due for health care. Health care providers besides hospitals and ambulance services should also include the liable third party’s name, address, and liability insurance coverage information. Within 5 days of recording the lien, the health care provider should send the patient and the liable third-party and their insurance carrier a copy of the lien by first-class mail. Failure to abide by these rules can invalidate a medical lien. A personal injury claimant should have their attorney confirm if their liens were perfected, or if they can be excluded from the award payout.

Consensual Liens

In some instances, medical providers will have a patient sign an agreement regarding paying for their treatment through third-party liability. This agreement is known as a letter of protection, and forms a consensual lien. These medical liens are different from the statutory medical liens discussed above. If you have retained an attorney for your personal injury claim, they should review the letter of protection before you sign it.

Doctors present letters of protection for consensual liens most often when the plaintiff doesn’t have health insurance to offset their medical costs, especially when they need a high-value procedure. The issue here is that the health care provider can charge full rates, also known as chargemaster rates, as opposed to what they would charge insured patients. Another serious issue is that private consensual liens aren’t bound by the one-third rule like statutory medical liens. So if treatment at chargemaster rates exceeds the injury award, or the plaintiff’s suit is unsuccessful, they can end up owing their medical provider a hefty sum.

Just because a consensual lien doesn’t have the same protections as a statutory lien doesn’t mean that an attorney can’t negotiate it on behalf of their client. An attorney can use rules for statutory liens as the basis for negotiating private liens, or even refuse to settle a case- because their client wouldn’t receive a payout anyway due to the lien- until the medical provider agrees to reduce the lien.

Your Personal Injury Attorney Can Negotiate Your Medical Liens

There are a few strategies a personal injury plaintiff can use to get the most out of their claim. One that you may not have already thought of is retaining an injury lawyer who will negotiate your medical liens with your health care providers. Attorneys can use several different theories to argue for lower medical liens that result in higher payouts for their clients.

Arizona is a comparative negligence state, so damages in a lawsuit can be reduced by the percentage that the party is found to be at fault for the accident. This should be taken into consideration when negotiating your medical liens. So let’s say your total damages are $20,000, but you are found to be 10% at fault for the accident. This would mean your award would be reduced to $18,000. Here, your attorney should use this as justification to lower medical liens by 10% as well.

One caveat of Arizona’s medical lien law is that one-third of a plaintiff’s award is protected. This includes all health care providers, including hospitals. It also includes the plaintiff’s personal injury lawyer. If paying medical liens means receiving less than one-third of your total award, your lawyer needs to notify your medical providers so your liens can be reduced. Your lawyer should also make sure that liens are reduced at the same rate as attorney’s fees, as the health care provider did not contribute to the plaintiff’s legal services.

Requesting an itemized version of your bill isn’t a bad idea after any medical event, not just after a personal injury claim. Some health care providers will charge much higher rates for medical lien patients than they would for a patient paying through Medicare or private insurance. Auditing your bill forces them to show where you have been overcharged, and some may reduce certain charges upon request for further explanation. A court may even order the health care provider to reduce the lien if they can’t prove that what they charged is a reasonable market rate. This is especially true if the plaintiff has in-network insurance coverage for the services rendered.

Retain an Experienced Accident Attorney for Your Arizona Injury Claim

Every dollar counts when you are fighting for a personal injury award after a serious accident in Arizona. Some claimants proceed with their cases representing themselves, thinking avoiding paying attorney’s fees will result in a higher award. But negotiating medical liens is just one way your Arizona injury attorney can fight to achieve you a higher settlement, even after taking their cut. Another way our firm gets you more is by charging a lower rate for our services, which also means we need to work harder to get paid. See the difference we can make in your case for yourself by scheduling your free phone consultation. Get started today at 480-470-1504 for more.