Beware of the ERISA Lien “Monster”

Published on Mar 29, 2017 at 6:42 pm in Auto Accidents.

If you’ve been involved in a serious car accident in the state of Kentucky and are struggling to receive compensation from an employer to pay for your medical bills, you may find yourself frustrated. Kentucky’s laws which govern what an employer is liable to pay in such circumstances can be complex. Furthermore, if you’re in the process of filing a personal injury claim against the driver who caused the accident or an insurance agency that has treated you unfairly, the way in which you receive that compensation can be additionally complicated.

You should be aware that often, if your medical bills were paid by the health insurance of an employer’s health plan, the health insurance company or plan may want you to reimburse it out of any personal injury recovery. Your “insurance” turns out to be not insurance at all, but a “loan”– also known as a lien. The laws in some states, including Kentucky, generally prohibit such claims by insurance companies, but many companies continue to make these claims anyway.

We have seen cases where the insurance companies hired lawyers to make these claims for them. What they don’t tell you is that this area of law is governed by a federal law called ERISA (The Employee Retirement Income Security Act of 1974). Your attorney must understand the implications of ERISA on your case.

There are other liens that may affect your total recovery during the process of filing a case. If your bills were paid by Medicare, Medicaid, or the United States Government (including “free” military care), you may be forced to pay back a portion of your settlement. This one is the most common lien in addition to the lien noted above. Other liens exist and may come into effect. Any that may impact your case should be brought up by the personal injury attorney who is handling your car accident claim.

If you have any questions regarding Kentucky car wreck claims and how a lien may affect your case, don’t hesitate to get in touch with Daryl T. Dixon, Paducah, KY car accident lawyer, today. At Daryl T. Dixon Law, we are familiar with the legal loopholes and unfair tactics insurance companies often try and attempt and know how to stop those attempts and get you the compensation you need to move forward.

Our office is more than happy to offer you a consultation regarding your possible case at no cost to you. Get in touch to learn more or to receive a free copy of Daryl T. Dixon’s eBook entitled “The Five Mistakes That Can Wreck Your Kentucky Car/Semi-Truck Accident Case.” The above information is just part of the valuable tips you will find in Daryl’s book.

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