I filed suit today in federal Court against a self-funded ERISA plan which was seeking recovery of a lien against my client’s personal injury recovery. My client was seriously injured in an automobile accident. The self-funded ERISA plan paid for his medical treatment. Unfortunately, there was limited bodily injury and uninsured motorists limits available. My client’s personal injury attorney recovered those benefits, but the ERISA plan sought recovery of 100% of its lien.
As often happens, the personal injury attorney recommended trying to negotiate with the ERISA plan to try to get a reduction of the lien. And, as often happens, the ERISA plan refused to budge. (Even if the plan had agreed to a pro rata reduction, that would have been inappropriate to pay in this case.)
The client found me through this blog, and contacted me to see if I could do anything about the lien. After reviewing the documents, I felt confident that there was no lien at all. I was retained to file suit and try to eliminate the lien. Suit has been filed, and I will let you know how it goes.
Repeatedly, I have seen cases where good attorneys pay back liens that do not even 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 liens is complicated and one should not dabble in it unless experienced.
Frequently, personal injury attorneys will recommend their clients to hire The Nation Law Firm to negotiate those liens. This referral removes any potential liability from the personal injury attorney, and provides a much needed service to their clients.