Posted on 12/23/25
A medical lien is a legal right that allows a healthcare provider to be paid directly out of your future settlement before you receive the remaining funds. When you are unable to pay medical bills after being injured in an accident, your injury attorney in Buffalo may persuade healthcare providers to treat you on a lien until compensation is awarded.
Medical Liens Impact the Portion of the Settlement You Receive, But Benefit You
In any personal injury case, including car accidents and slip-and-fall accidents, much of the immediate financial pressure comes from healthcare costs. You may not have the resources to pay for all the treatment you need, but a lien can delay payment pressure until you’ve received compensation from a party that was at fault or who shared fault.
When there are medical liens, you usually still receive part of your settlement, provided you chose an auto accident attorney in Buffalo who calculated your total medical costs accurately. If you have longer-term medical needs you haven’t been billed for yet, you will receive these funds. Earmark them for their intended purpose. You will need them later.
Although having medical liens deducted before you receive a settlement will reduce the total you receive, you would have to pay those bills sooner or later. As a result, liens don’t directly impact the net value of your compensation.
Your Lawyer Will Work to Ensure That You Receive Compensation Despite Medical Liens
Current medical costs and loss of wages exceeding your PIP coverage are only part of a full settlement. Your lawyer will claim compensation for several different types of harm you suffered. They will:
- Evaluate and claim future medical expenses
- Claim compensation for future loss of wages or earnings
- Factor in compensation for personal damages, like pain and suffering, and emotional distress
However, in line with New York Civil Practice Law & Rules § 1411, your overall compensation is reduced by your share of fault. For example, if you were 60% to blame for the accident, you would only recover 40% of your damages. This could mean that you are still personally responsible for any outstanding medical bills. Lawyers work to maximize your compensation by disputing unsupported allegations of fault.
Can an Attorney Reduce the Impact of Medical Liens on a Settlement?
Your attorney’s work might not end once a settlement is awarded. They may be able to help you reduce the impact of medical liens on your settlement. They will:
- Begin by identifying all medical liens
- Work to negotiate lower costs
- Identify and challenge any incorrect liens
Medical bills often contain errors. Your attorney’s team can help you by searching for them. Confirming the need to scrutinize medical bills, Experian reports the most common errors. These include coding errors, charges for services you never received, data entry errors, incorrect dates that mean you get charged for extra days in the hospital, and duplicate charges.
This process may lead to delays. Remember, lienholders are paid before you are. Nevertheless, it can be worth waiting a little longer so that you receive a larger portion of your overall settlement. Medical liens are a complex area. To gain an understanding of how they affect the compensation paid directly to you, ask your attorney to explain them in the context of your situation.