An Employee Retirement Income Security Act (ERISA) lien can play an important role in a personal injury case. Generally, the plaintiff in a personal injury case is awarded damages if their lawsuit is successful. However, in some cases, a health insurance company may be able to use an ERISA lien to collect money that a plaintiff is awarded in a personal injury lawsuit.
At John Foy & Associates, we want the plaintiffs in personal injury cases to get the most money possible. With help from an Atlanta personal injury lawyer from our team, you can protect your personal injury settlement against an ERISA lien. To learn more, please reach out to us.
What You Need to Know About ERISA
The Employee Retirement Income Security Act dates back to 1974. This federal law sets minimums for many voluntary retirement and health plans in private industries, according to the U.S. Department of Labor (DOL). If you are on an ERISA plan but get injured at work, you may be subject to a lien.
For example, you can suffer a workplace injury that occurs through no fault of your own. You may use an ERISA plan to cover the costs of treating and recovering from your on-the-job injury. If you do, your employer or health insurance company can legally recoup money spent on your medical costs on a dollar-for-dollar basis.
If you are involved in a personal injury lawsuit based on a work injury, you may get compensation from any negligent parties. For those on an ERISA plan, your employer or health insurer can use a lien to collect money paid for your medical care. In this situation, they can take money from your personal injury settlement to cover the costs of your medical care.
How Your Healthcare Plan Is Funded Is Key
Not all healthcare plans are subject to liens in personal injury cases. If you have an insured plan, it is unlikely that you will have to deal with an ERISA lien. On the other hand, if you have a self-funded healthcare plan, you may have to pay back money to your employer or health insurer if you get a personal injury settlement.
An insured plan requires you to pay a premium to a health insurance company, which covers the costs of your claims. Comparatively, with a self-funded plan, an employer pays for your medical costs on its own. Thus, if you have a self-funded ERISA plan but receive a personal injury settlement, your employer or health insurance provider may use a lien to try to get money from you.
The team at John Foy & Associates understands the challenges that come with ERISA liens. We can answer frequently asked questions about these liens and other legal topics. For more information, please get in touch with us.
How to Deal with an Employee Retirement Income Security Act Lien
If you face an ERISA lien against your personal injury settlement, try not to panic. At this point, there are several things that you can do, including:
Hire an Attorney
Partner with a lawyer who has achieved outstanding results in cases involving ERISA liens. Your lawyer can review your healthcare plan and determine if it is governed by ERISA. They can then help you determine if you have a viable argument to contest a lien.
Evaluate Your Medical Costs
Your lawyer can go over the medical costs that you have paid to date. They may be able to identify charges that can be deducted from a lien. For instance, if you have made co-payments, you may be able to subtract them from the claim against you.
Build Your Defense
Your attorney treats your case as its own entity. They will rely on their knowledge and insights of liens to help you develop an argument that is clear and effective. Your lawyer will explore every legal avenue to help you eliminate the lien or get it reduced.
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Documents that You Can Use to Prepare Your ERISA Lien Defense
Your insurance plan documents can have far-flung effects in an ERISA lien case. The Master Plan Document (MDP), Summary Plan Document (SPD), and others may contain clauses that contradict one another. If this is the case, you may be able to argue that you cannot have a lien levied against you.
It helps to assess your medical bills with your lawyer, too. Your attorney can calculate your medical expenses and make sure that there were no overcharges or mistakes. If you were forced to pay unreasonable medical charges, you may be able to have your lien reduced.
Your lawyer can account for your ERISA plan as they negotiate your personal injury settlement as well. If you receive a settlement offer from the defendant in your personal injury case, your attorney can advise you on whether to approve, reject, or counter it. When they do, they can consider the fact that you may need to pay back money based on prior medical bills since you were on an ERISA plan.
Find the Right Lawyer to Protect You Against an ERISA Lien
If you are concerned about an ERISA lien against you, it is in your best interests to be proactive to contest it. You can hire an attorney to help you with your lien. Yet, it is important to note that not all lawyers are well-equipped to address lien issues.
As you look for a personal injury lawyer, it can be beneficial to find one who knows all about ERISA liens. This attorney can provide you with legal resources to help you defend against a lien. They will commit the time, energy, and resources required to ensure you can build a compelling argument designed to help you maximize your personal injury settlement.
Share any questions you have about your lien with your lawyer. This allows you to get insights into liens, how they work, and how they can affect your personal injury settlement. If you feel confident in an attorney’s ability to help you defend against a lien, you can work with this lawyer to resolve your case.
Get the Legal Help You Need to Protect Your Personal Injury Settlement
John Foy & Associates is a Georgia law firm that can teach you everything you need to know about Employee Retirement Income Security Act liens. If you are dealing with a lien against your personal injury settlement, we are here to protect you in any way we can. Please contact us today to request a free case evaluation.
March 2 2021 
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