Government Liens: Five Frequently Asked Questions and Answers
If you are a current or past recipient of healthcare provided by a government program with statutory recovery rights the law as well as the terms of most settlement agreements require the satisfaction and discharge of those programs’ interest in any settlement award you may be eligible to receive. In other words if a governmental healthcare program treated you for the injuries that you are being compensated for in a settlement you are required to pay back a portion of that amount that was paid on your behalf.
The following questions and answers will provide a brief overview of government liens and the lien resolution process.
Q: How will I know if I have a government lien?
A: In most cases a Lien Resolution Administrator (“LRA”) is either court appointed or hired by your law firm to investigate whether or not you have a government lien pending.
Q: Do they check just my state or all states?
A: The LRA will check the state where you resided during the time of your injury.
Q: I have never been on any of these programs, so what does that mean for me?
A: The LRA investigation will show that you do not have any have any such obligations and as such will notify your law firm as well as the defense attorneys not to hold back any of your settlement award.
Q: How much do I owe?
A: While liens are negotiated and resolved on a case-by-case basis, the LRA will be requesting that the states agree that the final amounts not exceed a certain percentage of any individual claimant’s gross recovery.
Q: Should I contact the Medicare or Medicaid office to expedite the process?
A: No. You do not need to contact anyone. Any agency contacted by someone outside the LRA will result in duplicate files being created at the respective agency and may delay resolution of the Claimants liens.
