Possibly. In Delaware, medical providers and chiropractors can assert claims for payment out of personal-injury settlement proceeds in several different ways (bills, insurance subrogation, recorded liens, or by suing you or your attorney). Whether those claims reduce your settlement depends on the type of claim, whether federal programs (Medicare/Medicaid) are involved, whether your attorney negotiates reductions, and whether the provider obtained a court judgment or properly recorded a lien before distribution.

Detailed Answer — How medical and chiropractic claims typically affect a Delaware settlement

This section explains the common paths medical or chiropractic providers use to get paid and how each commonly affects settlement proceeds in Delaware. These are general rules to help you understand what to expect; your facts and parties involved can change the result.

1) Provider bills and voluntary negotiations

Most private medical providers and chiropractors who treated you after an accident do not automatically get money from your settlement. Instead they have a claim for unpaid bills. Your attorney normally notifies them about the pending settlement and negotiates with them for a reduced payoff. Many providers accept a negotiated lump sum or percentage less than the full billed amount in exchange for a written release or lien waiver.

2) Health insurer or ERISA plan subrogation

If you used private health insurance to pay treatment, the insurer often has a contractual right to be reimbursed (subrogation) from any third-party recovery. In some cases the insurer’s right is governed by federal ERISA rules (if a self-funded plan covers you). That means your insurer may assert a claim against settlement proceeds; your attorney should identify these claims early and negotiate with the plan or seek a court determination if necessary.

3) Medicare and Medicaid (state/federal programs)

If Medicare or Delaware Medicaid paid for your treatment, federal and state rules require repayment from any settlement for the part those programs paid. Those programs commonly assert liens or demands for conditional payment reimbursement before funds are distributed. The Delaware Division of Medicaid & Medical Assistance maintains third-party liability and recovery processes you should expect to satisfy. Your attorney should obtain a conditional payment report from Medicare and resolve or arrange repayment before distributing settlement proceeds.

4) Statutory liens or hospital/provider liens

Some states have statutory hospital lien laws that give hospitals a direct lien on personal-injury recoveries. Delaware does not commonly use a broad hospital lien statute the way other states do; instead, providers typically rely on contract, subrogation, or court judgments. Because statutes and practice can change, your attorney should check recorded liens in the county land records and verify whether any provider has filed a perfected lien or obtained a judgment against you.

5) Judgments and recorded liens

If a provider sues and obtains a judgment against you (or obtains an order specifically attaching settlement funds), or records a valid lien, that judgment or lien can be enforced against your assets and potentially against settlement proceeds. A negotiated or court-ordered resolution of that judgment will usually reduce the net amount you receive.

6) Attorney fees, costs, and priority of payments

Most plaintiffs’ attorneys work on contingency and are paid a percentage of the gross recovery. In practice: your attorney will usually pay medical providers from settlement proceeds but will do so after deducting attorney fees and litigation costs unless your fee agreement says otherwise or a court orders a different priority. This is why settlements often show multiple line items: gross recovery, attorney fee, costs, medical lien payments, and client net. Make sure your attorney explains the anticipated allocation before you sign any release.

7) Practical outcome — what you should expect in Delaware

• Private chiropractors or doctors often accept negotiated payoffs in order to get something immediately instead of risking nonpayment if you exhaust the settlement paying other claims.
• Insurers and government healthcare programs are more rigorous and often demand repayment up front or through a formal process.
• Your attorney should identify all potential claimants, request lien statements, and either negotiate reductions or have the settlement fund placed in escrow until claims are resolved.

What you (and your attorney) should do step-by-step

1. Tell your attorney every payer (insurance, Medicare/Medicaid, auto PIP, workers’ comp) and every provider who treated you.
2. Request written lien or payoff statements from each provider and any insurer with subrogation rights.
3. Ask Medicare/Medicaid for conditional payment information and obtain written statements about how much they will seek to recover.
4. Require written releases or lien waivers from providers before final distribution.
5. Consider escrow or court approval of settlement if claimants refuse to resolve. Your attorney can ask the court to approve distribution or to interplead funds to protect you from later claims.

Relevant Delaware resources

• Delaware Code (general reference for state law): https://delcode.delaware.gov/
• Delaware courts (for filing judgments, interpleader, and local rules): https://courts.delaware.gov/
• Delaware Division of Medicaid & Medical Assistance (third-party liability and recovery): https://dhss.delaware.gov/dmma/

FAQ-style examples (hypotheticals)

Hypothetical A

You settled a car crash claim for $50,000. Your chiropractor billed $6,000 and your health insurer paid $4,000. The chiropractor can demand payment but commonly will negotiate (for example, accept $2,500). The insurer can assert subrogation and may demand reimbursement of the $4,000; you or your attorney will negotiate or repay from settlement proceeds. After attorney fees and costs, the negotiated medical payments will reduce your net.

Hypothetical B

Medicaid paid your bills. Medicaid asserts a recovery claim. Federal/state rules require Medicaid repayment from your settlement, and Medicaid will typically seek full reimbursement unless a waiver or compromise is approved under its recovery procedures.

Helpful Hints

• Collect every medical bill and Explanation of Benefits (EOB) early.
• Ask your attorney to obtain written lien/payoff statements from providers and insurers.
• Do not sign a medical provider release without getting a full lien waiver or payoff in writing.
• If Medicare/Medicaid contributed, expect a formal repayment process—start that process early.
• If a provider refuses to negotiate, consider escrow or a court-supervised distribution to avoid personal liability.
• Be transparent with your attorney about all sources of payment (health plans, auto PIP, workers’ comp, personal insurance).
• Get settlement accounting in writing showing gross recovery, attorney fees, costs, lien payments, and your net.