MassHealth lien settlements can be a complex and overwhelming process, but understanding the basics can help you navigate it with confidence. In Massachusetts, MassHealth has the right to file a lien on a settlement or award to recover the amount it paid for medical expenses.
MassHealth lien settlements are governed by state law, specifically M.G.L. c. 119A, which outlines the procedures for filing and resolving liens. This law requires that MassHealth be notified of any settlement or award, and that the recipient of the settlement or award must hold a portion of the funds until the lien is resolved.
A MassHealth lien can be a significant portion of a settlement or award, often ranging from 25% to 100% of the total amount. For example, if a settlement is worth $100,000, MassHealth may be entitled to $50,000 or more, depending on the amount it paid for medical expenses.
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MassHealth Lien Settlement Process
MassHealth lien settlement can be a complex process, but understanding the steps involved can help you navigate it more smoothly.
MassHealth, the Massachusetts Medicaid program, has the right to file a lien on a settlement or judgment related to a personal injury claim. This means that MassHealth can claim a portion of the settlement funds to reimburse itself for medical expenses.
MassHealth will typically send a notice of lien to the claimant and their attorney, outlining the amount owed. This notice must be responded to within 30 days to avoid any further action.
The lien amount is typically based on the amount of medical expenses paid by MassHealth. In some cases, the lien may be reduced or waived if the claimant can demonstrate that they are indigent or have other financial hardships.
MassHealth lien settlements can be resolved through negotiation or arbitration. In some cases, the claimant may be able to settle the lien for a lower amount than the original amount owed.
The entire lien settlement process can take several months to complete. Once the lien is resolved, the claimant can receive the remaining settlement funds.
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Key Individuals and Resources
Michael J. Szklasz is a key individual to know, having successfully negotiated even child support liens.
Liens for medical services from different providers can be discovered after a search, and it's possible to have 2 liens for medical services from different providers.
You should review the lien notice with your lawyer, especially if you had multiple doctors or hospitals involved.
Depending on the type of lien, your lawyer may be able to negotiate it, so it's essential to schedule a sit-down with your lawyer to review the lien letter.
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Frequently Asked Questions
Can you negotiate down medical liens?
Yes, many medical liens can be negotiated, potentially increasing your net recovery and saving you money in the long run.
Do MassHealth liens expire?
MassHealth liens do not expire, but they can be dissolved under certain circumstances. Specifically, MassHealth liens must be dissolved at death, and enforcement is only authorized for wrongly-paid benefits.
Do you have to pay back MassHealth?
You may be required to repay MassHealth for the total cost of care if you're 55 or older, or if you're in a long-term care or medical facility. Repayment requirements vary, so it's essential to review MassHealth's policies for more information.
Sources
- https://www.massestateandelderlaw.com/masshealth/masshealth-liens-and-estate-recovery-rules/
- https://masslawyersweekly.com/2023/12/21/sjc-masshealth-cant-enforce-lien-against-decedents-home/
- https://elderlaw.info/2019/01/28/does-the-lifetime-lien-placed-on-real-estate-by-masshealth-terminate-upon-death/
- https://www.bhlawoffices.com/blog/whether-a-mass-health-lien-has-to-be-deducted-from-your-car-acci/
- https://www.avvo.com/legal-answers/masshealth-liens-in-personal-injury-settlement-1605373.html
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