Do medical or chiropractor liens get deducted from my settlement in Georgia?

Short answer: Yes — in Georgia, medical bills, hospital statutory liens, insurer subrogation claims (including Medicare/Medicaid), and any provider liens or loans can reduce the money you actually receive from a personal-injury settlement. How much is deducted depends on the type of claim, whether the provider filed a valid lien or has a subrogation right, and whether your attorney negotiates reductions.

Detailed answer — how liens and medical bills affect your Georgia settlement

This section explains the common types of claims that can attach to a settlement and how they are handled under Georgia law.

1. Types of claims that can reduce your settlement

• Statutory hospital liens: Georgia law recognizes certain hospital liens against recoveries for injuries. Hospitals must follow statutory filing requirements to perfect a lien. If a hospital has a valid statutory lien, it can claim a portion of your recovery for unpaid hospital charges. For more information on where to find Georgia statutes, see the Georgia Legislature website: https://www.legis.ga.gov/.
• Provider liens or assignments: Some medical providers (including chiropractors) will ask you to sign an assignment of medical benefits or a lien/letter of protection (LOP). An assignment or properly filed lien can give the provider a direct claim against settlement funds.
• Health insurer subrogation: If an insurer (including your health plan) paid treatment, it may have subrogation or reimbursement rights to be repaid from your recovery. The insurer’s right depends on plan language, state law, and any applicable ERISA rules.
• Medicare and Medicaid: Federal law requires Medicare to be reimbursed for conditional payments related to injuries. Georgia Medicaid (state program) also can seek recovery. These federal and state programs have strict repayment processes that usually must be satisfied before you get your settlement proceeds. See Medicare coordination and recovery information at https://www.cms.gov/Medicare/Coordination-of-Benefits-and-Recovery and Georgia Medicaid information at https://dch.georgia.gov/.

2. Chiropractor-specific issues

Chiropractors are providers like other medical clinicians. They may:

• Accept payment directly and expect you to pay from settlement proceeds.
• Agree to a letter of protection (LOP) promising payment from your recovery. An LOP is a contract, not an automatic statutory lien; it must be honored or negotiated at settlement.
• Try to enforce a lien or a balance through collection or a lawsuit if unpaid.

3. Who gets paid first?

There is no single universal priority order that always controls every Georgia settlement. Typical practice when a personal-injury case resolves is:

1. Attorney fees and litigation costs are accounted for (attorney usually deducts their contingency fee and expenses from gross recovery under the fee agreement).
2. Known liens and subrogation demands are handled — either paid directly by the attorney, paid from the settlement, or negotiated down. Some liens (like valid hospital statutory liens) must be satisfied before the injured party receives proceeds.
3. The injured party receives the remaining net proceeds.

In practice, attorneys try to negotiate liens down and will often pay some lienholders from the settlement funds. The exact distribution depends on the claims asserted and any legal priority or contractual rights.

4. Statutory requirements and challenges

If a provider claims a statutory lien (for example, hospital lien statutes), they generally must follow statutory notice and filing rules to be entitled to recover from your settlement. If they failed to comply with the statute, the lien may be invalid or subject to challenge. To find the applicable Georgia statutes, search the Official Code of Georgia Annotated via the Georgia General Assembly site: https://www.legis.ga.gov/.

5. Medicare and Medicaid repayment obligations

Medicare can demand repayment of conditional payments it made for treatment that relates to your injury. You and your attorney must follow Medicare’s process to request a conditional payment report and obtain a final demand before closing the settlement. Georgia Medicaid has its own recovery procedures and often must be notified of the settlement.

6. Negotiation and reduction of liens

It is common to negotiate medical bills and liens down. Providers often accept less than billed amounts, especially where bills are high and the recovery is limited. An experienced personal-injury attorney will:

• Request itemized medical bills and proof of charges.
• Demand lien verification and statutory compliance documentation.
• Negotiate payoffs and get written releases from lienholders.

What you should do now — step-by-step checklist

1. Tell your attorney about every provider who treated you, including chiropractors. Give copies of bills and insurance payments.
2. Ask your attorney to obtain all lien and subrogation statements in writing and to verify whether any hospital filed a statutory lien.
3. Get itemized bills and an accounting of who paid what (insurer payments, adjustments, write-offs).
4. Require written payoff figures from any provider claiming a lien. These figures should include any reduction the provider will accept.
5. If Medicare/Medicaid might have paid, have your attorney request conditional payment information from Medicare and notify Georgia Medicaid as required.
6. Negotiate: experienced lawyers routinely reduce lien amounts and secure releases before distributing settlement funds.
7. Don’t sign a settlement without clear instructions in writing showing how liens, attorney fees, costs, and net recovery will be allocated.

Common questions clients ask

Will my attorney pay providers for me?

Usually yes. Attorneys who handle personal-injury settlements commonly pay lienholders and providers from the settlement proceeds after the settlement closes. Confirm in writing how your attorney will handle payoffs and obtain releases.

What if a provider sues after I receive my settlement?

If a provider had a valid lien or legal right and you received funds without satisfying that right, the provider may attempt collection or file suit. That is why obtaining releases and verifying lien satisfaction before distributing funds is critical.

Can a provider take my entire settlement?

Not usually. A provider may have a lawful claim, but attorneys and courts typically protect the injured party’s reasonable recovery. Liens and subrogation claims are limited to reasonable charges and what the provider can legally assert — and many times are negotiated down.

Helpful hints

• Get everything in writing: fee agreements, lien payoffs, and release documents.
• Ask your lawyer for a proposed settlement distribution worksheet before you sign anything.
• Never ignore demands from Medicare or Medicaid — federal and state programs have formal recovery processes that can delay or reduce your net recovery.
• If a chiropractor provided care under a letter of protection, confirm whether they recorded a lien or will rely on an assignment — and get a written payoff amount.
• Request itemized bills and compare billed charges to what insurance actually paid. Often the payable amount is much lower than billed charges.
• Consult a lawyer early — early involvement makes it easier to manage liens, negotiate reductions, and comply with statutory procedures.

Disclaimer: This article is for general information only and is not legal advice. It does not create an attorney-client relationship. Laws change and facts matter. Consult a licensed Georgia attorney about your specific situation before making decisions.