Medical Liens and Legal Funding
Let’s start with the basics. What is a medical lien? A medical lien, according to USlegal.com, “is the right of a health care provider, doctor, or hospital to assert an interest in personal injury recoveries of its patients. The amount that can be recovered by way of a medical lien will be limited to the cost of the treatment or the service provided.” This payment is negotiated by your lawyer and taken from your settlement. How does this affect your case and legal funding? Read on to learn more.
Medical Liens and Personal Injury Cases
Often, case value is highly dependent on medical damages. All of the physical therapy, chiro, and more advanced medical treatment you receive should be accounted for and presented in a demand from your attorney. As with property damage, medical damages serve as benchmark when determining your cases value at settlement. Often, pain and suffering damages accompany cases with large medical liens.
A Legal Funding Company’s Perspective on Medical Liens
When it comes to medical liens and legal funding, your potential for funding comes on a case by case basis. If there is not a large defendant insurance policy, funders are a bit wary of high medical liens because they can crowd out funding liens. Check out the following two examples to better understand this legal funding company’s eligibility process.
Medical Liens and Legal Funding Example #1:
Say you have a $1 million insurance policy and $20,000 in medical liens. The common rule is that your case value is three times your medical lien amount, making this particular case value $60,000. Generally, a third of that goes to your attorney, a third goes to the medical provider, and a third goes to you, the plaintiff. Because of your insurance coverage amount in relation to the amount of your medical liens, a funder may be willing to offer you 15% of your medical lien in funding (or $3000).
Medical Liens and Legal Funding Example #2:
Now, say you have a $25,000 insurance policy and $20,000 in medical liens. As we discussed in the prior example, your case value would still be $60,000. However, your lower coverage rate of $25,000 affects your overall value. The payment to your lawyer, medical provider and personal payment leaves little to nothing for the lender.
In spite of example two, it is important to note that you can get the medical provider to lessen the lien amount. Seek help from your attorney on this. It is always helpful to get professional legal advice to enhance your chances of the best possible outcome.
Do you have more questions? Are you interested in legal funding? Did we clear up all your questions surrounding medical liens and legal funding? Learn more about legal funding, apply online, or give us a call at (800) 385-3660. We’re happy to answer any questions you might have.