Lien resolution in personal injury cases is complex, and handling it in-house poses significant challenges. To explore the why, it is important to consider key common questions:
What are my legal obligations as plaintiff’s counsel and am I personally liable?
Attorneys must ensure all liens are properly identified and resolved, which involves adhering to ethical rules and potential personal liability for unresolved liens.
Is there a lien? Reimbursement obligation? Just a debt?
Determining whether a claim is a lien, a reimbursement obligation, or just a debt requires meticulous investigation and analysis. This process is time-consuming and requires attention to detail to ensure all obligations are accurately identified.
Is the reimbursement obligation owed limited to past payments or does it also include future payments?
Understanding whether reimbursement includes only past payments or also future ones adds complexity, requiring careful interpretation of plan terms.
Are there any state-specific laws peculiar to the jurisdiction that impact lien resolution for the client?
State-specific laws affect lien enforceability and resolution, necessitating up-to-date knowledge of varied regulations across jurisdictions.
For non-government benefit plans, what law applies? State or federal? Is it governed by ERISA, FEHBA, FMCRA, or state law? Combination of laws?
Navigating whether state or federal laws (e.g., ERISA, FEHBA) govern non-government benefit plans can be challenging, especially in multi-state cases.
Who is the plan administrator and recovery vendor for non-government plans?
Attorneys must identify the proper contractor then establish communication with these entities, understand their lien recovery processes, and negotiate accordingly.
Can the plan or vendor actually prove it is the type of plan it claims to be? And its recovery rights under the law?
Scrutinizing the legitimacy of plans and their claimed recovery rights requires thorough legal research and sometimes challenging lien holders’ claims.
When looking at the client’s net recovery, are they made whole and is reimbursement to the lien holder proper?
Ensuring that clients are made whole while balancing the required reimbursement to lien holders is a delicate task. Attorneys must navigate the complexities of lien negotiations to maximize the client’s net recovery.
What standard reductions or other reductions are available under state or federal statutes for the applicable lien?
Applying standard reductions and exploring other reduction options requires detailed knowledge of relevant statutes and legal defenses.
Conclusion
The intricate nature of lien resolution often makes it challenging for law firms to handle alone. Attorneys must navigate a labyrinth of legal obligations, complex negotiations, and meticulous documentation to protect their clients’ interests. This is why outsourcing makes sense for most types of healthcare liens.
For a deeper dive on this subject, download our white paper titled “The Daunting Task of Resolving Liens for Personal Injury Law Firms” by clicking HERE. To get started with outsourcing lien resolution by partnering with Synergy contact us TODAY.
