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How a California Medical Lien Works. A medical lien grants a healthcare provider such as a hospital or doctor the right to receive money from your personal injury claim to recover any money they are owed for your treatment related to the accident. There are two broad types of healthcare liens: explicit and hidden.
A personal injury settlement will not cause a cancellation or have any other adverse effects on an injured party's Medi-Cal coverage. Rather, the program is structured like all other health insurance such that an injured accident victim will not recover double benefits for the same injuries.
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.
Under Welfare and Institutions Code section 14124.72, Medi-Cal's reimbursement consists of the benefits it has paid minus 25% for attorney's fees and a pro rata share of the litigation costs. However, pursuant to section 14124.78, Medi-Cal cannot recover more than the plaintiff's net recovery.
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.