Detailed Answer
When you secure a settlement in Kentucky, medical providers can assert liens on your recovery under the Hospital Liens Act (KRS Chapter 376). A proactive negotiation strategy can reduce the lien amount and maximize your net award. Follow these steps:
- Verify and Perfect the Lien: Confirm the provider filed the lien correctly within six months of your last treatment as required by KRS 376.020. Missing this deadline may let you challenge or eliminate the lien entirely.
- Obtain an Itemized Bill: Request a detailed statement of all charges. Itemization helps you spot duplicate entries, coding errors, or billed services that third-party payers don’t cover.
- Benchmark Against Standard Rates: Compare billed amounts to Medicare fee schedules or in-network rates. Providers often accept reductions to these publicly available benchmarks rather than defend higher charges.
- Offer Prompt-Pay Discounts: Propose immediate payment of a reduced lump sum. Many hospitals and clinics will negotiate discounts of 20–40% for quick resolutions.
- Negotiate on Reasonableness Grounds: Under KRS 376.030, liens may only cover “reasonable” charges. If bills exceed typical service costs, push back and demand a fair calculation.
- Coordinate With Your Attorney: Involve your lawyer early. Attorneys can package lien negotiations with liability and damages demands, which strengthens your overall position.
- Secure Written Waivers: Finalize any reduction agreements in writing. Obtain a lien-release or partial-lien waiver before you sign settlement documents to prevent future claims.
Implementing each of these strategies empowers you to lower the total lien claim and maximize what you keep from your settlement.
Helpful Hints
- Keep thorough records of all medical invoices, correspondence, and payment offers.
- Track deadlines closely; an unperfected lien often fails in court.
- Use publicly published fee schedules (Medicare, Medicaid) to support your reduction proposals.
- Consider structured settlements to guarantee lien obligations are funded over time.
- Always get any negotiated reduction or waiver in a signed writing.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. For guidance tailored to your circumstances, consult a qualified attorney.