In settlement, do the Medicaid Liens get paid before the Attorney Fees?
abigail_evelyn asked:
If a Mass Tort/Products Liability case has been settled and there are Medicaid and/or Medicare Liens that need to be paid out of that settlement, do the “super liens” have to be paid before the attorney fee percentage is taken out or can the attorney fee’s be taken off the gross settlement?
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If a Mass Tort/Products Liability case has been settled and there are Medicaid and/or Medicare Liens that need to be paid out of that settlement, do the “super liens” have to be paid before the attorney fee percentage is taken out or can the attorney fee’s be taken off the gross settlement?
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The attorney’s fees are predicated upon the gross settlement.
The attorney gets his off the top, then everything else gets paid, then you get paid!
The Attorney has to be paid no matter what, so you deduct the Atty’s fees from the gross settlement, then you deduct the liens that need to be paid off. When all of this is done, then whatever is left of the settlement goes to the client. When there is little or no money left from the case to pay the liens, the atty’s fees are deducted and then the client is responsible for these bills. This is to the best of my knowledge, but always ask someone that has more insight in this matter.
THE ATTORNEY GETS HIS MONEY OFF THE TOP BEFORE ANYTHING IS PAID. THE MONEY THAT IS LEFT IS USED TO PAY OUT ALL LIENS THEN WHAT EVER IS LEFT AFTER THAT IS YOURS.
Good question– I have found that when the liabilaty carrier issues payment out on a settlment the medical liens will either be directly issued to that medical provider or by law must have their name on the settlement check. If checks are issued directly to the medical provider the attorney will recieve a check for the remaining balance with your name on it as well. The attorney will need your endorsment before he can put that check into his trust fund. Occasionally the attorney will issue a “hold-harmless” to the insurance company which will alow the full settlemet check to arrive at his office with only him and his clients name on it. The “hold-harmless” is simply a promise to the insurance company that the liens will be honored to the medical provider directly through his office. To sum all that up, i would say, yes medical liens a grenerally paid first, and attorney fees and what the client is compessated for is the last action all to be noted in a istribution letter”. I hope that helped, but please reply if I can help more!
From a lawyer. It depends on your contract with your lawyer. If you do not understand it get another law firm to look at it for you. If your lawyer is trying to cheat you the new law firm will tell you if you can sue your lawyer for legal malpractice and you could report him to the state bar association which could suspend his license or disbar him from practicing law. Most attorney’s take fees out after repayment of expenses.