Medicare, Welfare and most health insurance companies have the right to be reimbursed for any medical benefits paid on a liability claim in which a third party is at fault and there is a recovery of monies. This is called their right of subrogation. They will put a lien on any settlement, court award or verdict you may receive. Your attorney will investigate any subrogation rights of a health insurance company. Your attorney will deduct any lien amount prior to any disbursement to you as a result of a settlement, court award or verdict and pay the insurance company directly. Your attorney, prior to disbursement, will attempt to negotiate the lien amount with the insurance company. This will result in less money you will be responsible for paying back to the insurance company. You are ultimately responsible for reimbursing any lien amounts if the case is resolved in your favor. Therefore any liens will be deducted after the calculation of the contingency fee owed your attorney at the end of the case.
Make sure that your attorney has factored these costs in and included them in any settlement demand otherwise you may be unknowingly liquidating the money for your pain and suffering.
