Lien resolution addresses the third-party claims that attach to a recovery: healthcare provider liens, health plan subrogation and reimbursement claims, Medicare and Medicaid interests, workers' compensation liens, and letters of protection.
It requires identifying every potential claimant, verifying amounts, negotiating reductions where permitted, and documenting satisfaction before or at disbursement.
Alternative Names:
Lien Negotiation, Lien Administration
Why it Matters?
Unresolved liens delay disbursement and create exposure for everyone involved, including defense counsel and the paying carrier where the settlement agreement allocates responsibility poorly. Medicare's interests in particular can be enforced against the parties and their attorneys, so the settlement agreement should state clearly who resolves what and include indemnity for undiscovered claims.
Frequently Confused with
Related terms
Frequently asked questions
Who is responsible for resolving liens?
Can liens be negotiated down?
