You might ask yourself, why hire experts to assist with lien resolution when I can do it myself. You also might ask whether it is ethically permissible to outsource lien resolution to a lien resolution company. The first question is quite simple to answer and the second one requires a little more examination of the rules regulating lawyers.
The problem really starts with the responsibilities a law firm has at the beginning of each new case as it pertains to liens. I use lien synonymously with subrogation, reimbursement, and debts here even though there are differences. Given the law, a law firm must track liens that are asserted against their client’s personal injury claim and in some instances will have an affirmative duty to investigate and identify possible liens (Medicare & Medicare Advantage plans are good examples).
The law firm must determine whether a lien holder’s claim has merit and is legally valid. To reach resolution, this requires a law firm to have significant contact and interaction with a variety of lien holders along with recovery vendors. At the conclusion of the case, it frequently requires protracted negotiations to reach an agreement to resolve the claims made by a lien holder or recovery vendor against a settlement, judgment, or verdict. The bigger issue, given the distractions it creates, is that law firms frequently wait too long to begin to negotiate a reimbursement to a lien holder which can delay disbursement to the injury victim. All the foregoing creates pressure on law firms to outsource lien resolution functions.
By Jason D. Lazarus, J.D., LL.M., MSCC, CSSC For clients who are on Medicaid, they will most likely have a Medicaid lien when their case is settled. When Medicaid has made payments for medical expenses related to an injury, it may assert a lien against…
By Jason D. Lazarus, J.D., LL.M., MSCC, CSSC Although a deep dive into ERISA law and liens is beyond the scope of this article, this will give you an overview and a starting point. The Employee Retirement Income Security Act was passed by Congress and…
By Jason D. Lazarus, J.D., LL.M., MSCC You might ask yourself, why hire experts to assist with lien resolution when I can do it myself. You also might ask whether it is ethically permissible to outsource lien resolution to a lien resolution company. The…
