Liens. We hear the term, like a mechanic's lien for example but what are they and why do they exist?
A mechanic's lien is easy. The auto mechanic fixes your car and wants to get paid. if you don't do so he keeps your car until you pay him. This a simplified description as the law In Maryland has a host of legal requirements but the purpose is straight-forward.
In a similar vein health insurers and healthcare providers either want to secure payment for medical services they have or will render. or in the case of health insurers they want to be reimbursed for healthcare services necessitated by injuries sustained in an accident.
These are liens or legal claims to money or items like cars or homes.
In car and truck crash cases there are typically two types of lien. Either liens from healthcare providers for services they have or will perform or liens from health insuring entities. Sometimes the entities are governmental programs like Medicare or Medicaid others are private insurers like Blue Cross or Aetna.
The leverage they have to get paid is that failure to repay them can lead to loss of health insurance coverage and with Medicare and Medicaid they can seek the money from the injured party's lawyer and/or the at-fault liability insurer.
As a result lawyers for injured people and liability insurers are highly attentive to governmental liens. Doctors and other healthcare providers establish their liens through patients signing agreements to repay them in return for treatment.
There are also statutory liens for hospitals that arise by law and should not be ignored.
The bottom line is that liens are helpful in getting essential medical care rendered and paid for and should not be disregarded.
