Difficult clients, short deadlines and unfavorable facts are all headaches that lawyers share. So too are Medicare and Medicaid liens. For years, the plaintiffs’ bar has been saddled with the responsibility to resolve these liens before finalizing a personal injury settlement. Delays in resolution routinely cost claimants months or more before money is distributed.
In light of a new law, which will take effect this summer, delays in Medicaid/Medicare resolution will likely increase dramatically as defendants will now bear the burden of lien confirmation and resolution. Insurance carriers and self-insured defendants will face fines if they fund personal injury settlements or judgments without first verifying whether a claimant has a Medicaid or Medicare lien. If there is a lien, the defendants must confirm resolution of that lien before fully funding a settlement. With the enactment of the Medicare, Medicaid and State Children’s Health Insurance Program, or SCHIP, Extension Act of 2007, these changes take effect July 1, 2009.
