When an individual is injured in an automobile accident, the medical bills that result from the ensuing medical treatment are often paid by a variety of sources. Before settling the injury claim, consideration must first be given to the existence of any liens affecting the proceeds of the settlement. The following are three types of liens that frequently affect personal injury claims in our area:

The Federal Employee Compensation Act (FECA) is the federal version of state Workers’ Compensation. It applies to benefits acquired under the Federal Employees Compensation Act and the Longshore and Harbor Worker’s Compensation Act. In short, both acts provide the U.S. Government with a lien against personal injury settlement proceeds.

State law provides for a lien for medical care providers. The requirement for these liens is that they be in an amount that represents a just and reasonable charge for the medical service provided. The law provides for maximum caps which apply to various forms of medical care.

The Federal Medical Care Recovery Act (FMCRA) covers TRICARE claims. Under this law, any care that is received by the beneficiary at a military facility and/or under TRICARE is subject to this right of recovery. When making a personal injury claim, an agreement is signed with the appropriate branch of service pertaining to the government’s rights under this Act.

For more information regarding personal injury law, please contact an experienced attorney at the law firm of Paulson & Paulson, PLC.