You suffer injuries in a car accident. Paramedics arrive at the scene and carry you to the local hospital. When you arrive at the hospital, you provide your health insurance or Medicare information. You assume the bill is covered. Wrong. A few weeks later you receive a “hospital lien” in the mail. What?
Why is the hospital filing a lien against you and your car wreck claim? Why did the hospital refuse to bill your health insurance or Medicare? After all, you paid premiums (probably for years) for your health coverage. You paid premiums so you would have coverage when needed. I’ll tell you why the hospital refused to bill your insurance and filed a lien. Greed.
When you seek hospital treatment, the charges are inflated. Sometimes, they are greatly inflated. The hospital charges you inflated amounts knowing it will accept less (a reasonable amount) from health insurance. Look closely at your hospital lien paperwork! The hospital did NOT file a lien for the reasonable amount it always accepts from insurers or Medicare. No. The hospital filed a lien for the full, inflated charges. When you have an accident claim, Alabama law allows hospitals to file liens against your eventual settlement or recovery. Under existing Alabama law, the hospital has a right to collect those inflated amounts from any settlement of your car accident claim. So, hospitals often choose to file a lien rather than submit the bills to your health insurer.