Medical Liens
In Personal Injury Cases
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There's More Than One Way to Get Medical Treatment.
Understanding your payment options now may help you avoid costly surprises later.
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It doesn't cost to talk. Book a free consultation directly with Yana. No pressure.
What Is an Assumed Medical Lien?
An assumed medical lien is an agreement between an injured person and a healthcare provider. Instead of billing you upfront, the provider agrees to be paid from your settlement or verdict.
In simple terms:
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You receive medical treatment now
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Payment is delayed
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The provider is paid from the case proceeds
This arrangement can make treatment possible — but it must be structured carefully.
Insurance companies may also scrutinize lien-based treatment. Proper documentation and reasonable care are critical.
A medical lien is not “free treatment.” We often meet clients who believe a lien means someone else is covering the bill.
In reality, the lien secures payment from the future settlement.
Understanding that distinction early helps avoid surprises at the end of a case. By Garret A. Lungin, Attorney at Law.
What You Need to Know
Before Agreeing to Treatment
After a serious injury, one of the biggest concerns isn’t just pain, it’s how to pay for medical care.
Many injured people delay treatment because they don’t have health insurance or cannot afford out-of-pocket costs. In some California personal injury cases, medical providers agree to treat patients on a medical lien basis, meaning payment is postponed until the case resolves.
Yana Di Bella at Law Offices of Garret A. Lungin, helps clients in Sherman Oaks and throughout Los Angeles understand how medical liens work, when they make sense, and what risks to consider before signing anything.
The wrong lien arrangement can reduce your recovery.
We have seen situations where excessive or unnecessary treatment inflated lien balances beyond what the case could reasonably support.
Ethical coordination of medical care matters, both medically and financially.
Garret A. Lungin, Attorney at Law.
When Medical Liens May Be Appropriate?
In appropriate cases, liens allow injuries to be properly diagnosed, treated, and documented — which is essential for proving injuries in a personal injury claim.
While documented medical treatment is necessary to support a claim, the evaluation of a personal injury case depends on:
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Liability
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Severity of injury
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Insurance policy limits
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Long-term impact
Medical liens allow access to care — but they do not guarantee higher compensation.
As part of our commitment to every client, Yana Di Bella of the Law Offices of Garret A. Lungin personally negotiates every assumed medical bill before settlement funds are distributed.
While every case and every provider are unique, we believe every client deserves the benefit of a careful review and negotiation before settlement proceeds are distributed.
Every Dollar Matters
Our Commitment Doesn't End at Settlement
Lien negotiation can significantly impact your net recovery.
Not all lien balances are final. In many cases, we review charges and seek reductions when appropriate.
Proper lien management protects the client’s interests at the conclusion of the case. Garret A. Lungin Attorney at Law.
Statutory Medical Lien
A statutory lien exists because the legislature created it.
No separate agreement with the patient is generally required because the law itself gives the lienholder reimbursement rights.
Examples include:
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Hospital liens under applicable state statutes
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Medicare recovery rights
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Medi-Cal recovery rights
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Workers' compensation liens
Example:
A hospital provides $40,000 in emergency treatment after a car accident. If the statutory requirements are satisfied, state law may allow the hospital to assert a lien against a personal injury recovery.
The lien exists because the statute authorizes it.
Health Insurance Medical Lien
Right of Reimbursement or Subrogation
Many people call it a "health insurance lien," but private health insurance often does not have a true lien on the settlement.
Instead, the insurer may have:
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a contractual right of reimbursement
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a subrogation right
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or, in some cases, a statutory recovery right
Examples:
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Employer-sponsored health plans (often governed by ERISA)
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Individual health insurance policies
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Medicare
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Medi-Cal
For example:
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A private PPO pays $25,000 in medical bills.
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The policy says if the insured later recovers money from the at-fault party, the insurer must be reimbursed.
That reimbursement right usually comes from the insurance contract rather than from a traditional medical lien.
Medical Lien Strategy
Unlike chess, you don't get to start over if you make the wrong move.
Choosing how medical treatment is paid for can affect both your case and your financial recovery. Just as there is no single winning move in chess, there is no universal answer to whether a medical lien or health insurance is the better option. Every case is different.
The right approach depends on your injuries, available insurance coverage, and the overall strategy for your claim.
Make Your Next Move Count
Whether you're considering treatment under a medical lien or have already signed one, understanding your rights and obligations before your next decision may help protect your financial recovery.
Before You Make Your Next Move, Let's Talk.
Free Consultation. No Pressure. Get answers before making important decisions.
