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A lien will arise when an insurance company begins to cover expenses after a patient satisfies their deductible or pays for any treatment or prescriptions covered under a plan prior to the satisfaction of a deductible.
Once you notify the DHCS, you can begin to create a Medi-Cal lien. A lien gives the government the right to collect ? a kind of I.O.U. to be paid later. Medi-Cal's right to collect allows the organization to request a refund from personal injury settlements for treatment funds.
A hospital lien, also known as a medical lien, is a way of leveraging any future personal injury settlement or court judgment as collateral to assure your healthcare provider that you will eventually pay your medical bills.
For example, if someone is injured in a car accident and their medical insurance pays for the cost of all of their treatment after deductibles, the health insurance company can put a lien against the settlement.
The definition of a medical lien It's a legally binding agreement between a healthcare provider and the patient. It gives the healthcare provider the ability to recoup money owed for treatment by placing a request on the patient's personal injury claim.