Our client was severely injured in a car accident and his parents’ health insurer paid over $200,000 for medical expenses incurred as a result of the crash. Our client’s personal injury attorney settled the case for the available BI and UM policy limits (plus some additional money from the UM carrier for alleged bad faith). However, even given the excellent job by our client’s personal injury attorney, our client could not be made whole by the settlement.
The health insurer agreed to reduce its lien pro-rata for the attorneys fees and costs. However, after reviewing the insurance plan, I do not believe that the ERISA insurer has any right to any of the settlement proceeds. I filed a declaratory judgment action in federal court seeking a declaration that the ERISA carrier is not entitled to any of the settlement proceeds. I will keep you apprised of what occurs.
Repeatedly, I have seen cases where good attorneys pay back liens that do not exist, or they pay back way too much. Paying back liens that don’t exist, or paying back too much is a disservice to our clients, and can be considered malpractice. The law on health insurance, ERISA, PPO, and HMO liens is complicated and requires experience to unravel.
Many times, personal injury attorneys will recommend that their clients hire The Nation Law Firm to negotiate and litigate liens on behalf of the personal injury victims. This removes any potential liability from the personal injury attorney, and provides a much needed service to their clients.
I am currently in litigation in numerous such declaratory judgment actions at this time. For more information on lien resolution, click the word "Liens" in the right-hand column