Statutes of Limitations for Liens and Subrogation Claims

Learn about medical lien statutes of limitations to understand how long these can be asserted in your injury settlement and why lien letters can’t be ignored. The timeline for a provider to enforce a lien can be anywhere from three years to limitless, depending on the type of lien, and penalties also vary.

A personal injury lawyer would be the best resource to determine how liens may affect your settlement, but here are some general guidelines:

• Child support liens can be asserted until you have paid off the amount owed. They are not subject to a statute of limitations.
• Medical liens for government programs like Medicare, and Medicaid have no statute of limitations.
• Liens for TRICARE, a military healthcare program, are not subject to a statute of limitations.
• Private health insurance plans under the Employee Retirement Income Security Act (ERISA) have a three-year statute of limitations, which begins from the date of the last continuous treatment.
• Healthcare provider liens run three years from the date they should know whether they’ll be paid, which is usually the injury settlement date. 

A subrogation lien letter is a legal requirement for ‘perfecting’ a medical lien, which requires a provider to supply you or your personal injury attorney itemized medical records and bills and a written notice of the lien within 180 days from the last treatment date. When a lien is perfected, the provider may collect reimbursement for medical care.

Leading up to a medical lien collection, the provider will likely inquire about the trucking accident or a workplace injury to determine which third parties are financially responsible if you’re not at fault. The notice essentially pursues a claim against the third party for reimbursement of coverage already paid for the injury or damage. This may also be taken from your personal injury settlement.

TRICARE liens do not require the government to send notices. The government automatically has the right to claim reimbursement from settlements or jury awards. Medicare issues a formal demand letter advising beneficiaries of the payment responsibility.

If you’re due a settlement or jury award and you owe medical providers reimbursement for liens, these must be resolved within the statute of limitations. Exceptions to this are health insurance policies that do not permit subrogation no matter the timeframe. If you aren’t certain about your policy’s fine print, consult an attorney for help understanding the lien provisions.

A medical lien statute of limitations may be extended if a perfected lien isn’t paid after the settlement, allowing the provider additional time to collect the debt. Statutes of limitations for federal program liens, like TRICARE liens, may also be extended if you or your legal representative can prove collection of a settlement will cause significant hardship.

When repayment may leave you with financial burdens, contact a subrogation attorney to discuss negotiations or appeals.

The policy requirements and statutes of limitations for medical liens for private healthcare and federal programs like TRICARE vary widely, but one commonality is that these should not be ignored. If you settle a personal injury claim of any kind and don’t resolve the liens with the help of a lawyer, you could be placing your recovery in real jeopardy. In some cases, you can even be sued by your health insurance provider.

Medicare liens can begin accruing interest from the demand letter date, and the Judge Advocate General lawyers, or JAG, may pursue independent collection of your claim if you decline to include TRICARE’s interests in your settlement.

The Miller Law Group lawyers offer over 50 years of combined experience, and we’re happy to help our clients handle lien issues. As you can see, variations in lien types and the specifics of your case may affect the best resolution. If you’ve received a subrogation lien letter, contact us today to discuss your legal options.