Detailed Answer

Short answer: possibly. Whether medical bills or a chiropractor’s charges will be deducted from your settlement in Alaska depends on who paid the bills, whether anyone has a valid lien, and whether government or private insurers have legal reimbursement rights.

This answer explains the common scenarios you’ll encounter, how claims are typically resolved in Alaska, and what you can do to protect your recovery. This is educational information only and not legal advice.

Key categories that can reduce a settlement

• Private medical provider or chiropractor balances — If a provider has not obtained a court judgment or does not have a valid lien or assignment, the provider cannot automatically take money from a third-party settlement. Providers commonly ask patients to sign an assignment of benefits or a lien/letter of protection during treatment. Whether that assignment or lien is enforceable depends on the contract you signed and applicable Alaska law.
• Health insurer subrogation or reimbursement — If an insurer (private health plan, automobile no-fault/PIP, or other third-party payer) paid your medical bills, the plan often has a contractual right to be reimbursed from any third-party recovery. Group health plans may also have ERISA-based subrogation or reimbursement rights.
• Medicaid and Medicare — Government health coverage programs have strong statutory recovery rights. If Medicaid or Medicare paid for your care, those programs usually must be repaid from any settlement that relates to the injury. Federal Medicare secondary payer rules (CMS) and state Medicaid recovery policies apply.
• Hospital or statutorily authorized liens — Some providers (typically hospitals) in some states can file liens under statute. Whether Alaska has a particular statutory lien for hospitals or providers depends on state law and filing requirements; search Alaska statutes and consult a local attorney for specifics. You can browse Alaska statutes at the Alaska Legislature website: https://www.akleg.gov/basis/statutes/

How settlement money is typically handled

When you reach a settlement, several deductions commonly occur before you receive net proceeds:

• Attorney fees and costs — Your contingency-fee agreement will typically allow your lawyer to deduct fees and case costs from the gross recovery.
• Valid liens or subrogation claims — Health insurers, government payors (Medicaid/Medicare), or providers with enforceable liens/assignments may assert claims against the settlement. These are often negotiated, reduced, or satisfied through payment from settlement funds.
• Escrow or court-ordered holdback — Sometimes funds are placed in escrow or the court is asked to approve disbursement to resolve disputed liens.

Common Alaska-specific considerations

Alaska does not treat every provider the same. The legal effect of a chiropractor’s claim depends on the documents you signed (assignment, lien, or letter of protection), whether the provider properly filed a lien or obtained a judgment, and whether public programs (Medicaid) have recorded claims. For federal Medicare rules that affect settlements, see the Centers for Medicare & Medicaid Services (CMS) guidance on recovery and Medicare Secondary Payer rules: https://www.cms.gov/Medicare/Coordination-of-Benefits-and-Recovery

If Alaska statutes apply to a particular type of lien or to medical assistance recovery in your case, you can search the Alaska statutes and regulations here: https://www.akleg.gov/basis/statutes/

Typical steps to resolve claims against your settlement

1. Get a complete, written statement of all medical bills and any asserted liens. Ask each provider or insurer for a written demand showing the exact amount they claim.
2. Ask your attorney to verify whether any asserted lien is legally enforceable in Alaska (assignment, timely filing, judgment, or statutory basis).
3. Negotiate reductions. Many providers and insurers accept less than the full billed amount, especially if you are represented by counsel and the recovery is limited.
4. Consider an escrow or structured settlement to preserve funds while you resolve disputes.
5. Obtain written releases and lien satisfactions. Make sure you get a signed lien release or satisfaction once a claim is paid or resolved.

Practical examples (hypotheticals)

Example 1 — Private chiropractor with no signed lien: You see a chiropractor after a car crash and you did not sign an assignment or lien. Your chiropractor may bill you, but unless the chiropractor sues you and obtains a judgment or files an enforceable lien under Alaska law, the chiropractor cannot automatically take funds from a third-party settlement. The chiropractor can still pursue collection against you personally.

Example 2 — Health insurer paid bills: Your private insurer paid your chiropractic bills and your plan’s contract gives it a right of reimbursement. The insurer can assert a subrogation claim against your settlement. Many insurers will negotiate their lien down if your attorney shows the case value and remaining settlement after attorney fees.

Example 3 — Medicaid recipient: Medicaid paid medical bills. Alaska’s medical assistance program will usually assert a recovery claim against the settlement and must be repaid from the portion attributable to medical care. These claims are statutory and commonly cannot be ignored.

What you should do now

• Do not spend settlement proceeds until all liens and reimbursement claims are resolved or placed under written agreement.
• Gather all records: itemized medical bills, insurance explanations of benefits (EOBs), any documents you signed at treatment (assignments or letters of protection), and communications about liens.
• Talk to an Alaska personal-injury attorney before signing any release or accepting funds. An attorney can evaluate lien validity, negotiate reductions, and protect your net recovery.

Helpful Links

• Alaska Statutes: https://www.akleg.gov/basis/statutes/
• Alaska Department of Health and Social Services (general site): https://dhss.alaska.gov/
• CMS — Medicare Coordination of Benefits & Recovery (Medicare Secondary Payer guidance): https://www.cms.gov/Medicare/Coordination-of-Benefits-and-Recovery

Helpful Hints

• Ask for written lien statements. Never accept a verbal claim as the final word.
• Get itemized bills and EOBs so you can see what was actually paid vs. billed.
• If a provider demands full payment, ask your attorney to negotiate a discount — providers often accept less than billed amounts when repayment must come from a limited settlement.
• Watch out for ERISA-plan claims. Federal law can restrict your options against an ERISA-governed insurer; an attorney experienced with ERISA can help.
• If you receive Medicaid or Medicare benefits, notify the programs of your settlement and follow the programs’ procedures to resolve claims.
• Do not sign a final release without resolving or providing for outstanding liens and subrogation rights.
• Retain all lien releases and satisfactions in writing. Keep copies with your settlement documents.
• If multiple parties claim rights to your settlement, consider escrow or court approval to distribute funds to avoid later disputes.

Disclaimer: This is general information about Alaska law and common practices. It does not constitute legal advice, create an attorney–client relationship, or substitute for consultation with an attorney licensed in Alaska. Laws and procedures change. Consult a qualified Alaska attorney about the specifics of your case before making decisions.