Lien Resolution
Lien Resolution Services
Merschbrock Law specializes in helping personal injury attorneys maximize the recoveries of their clients by reducing subrogation and lien claims against tort victims. We work with law firms to negotiate reduced payouts for ERISA, FEHBA, Medicare, Medicaid, Short-Term Disability, and other healthcare liens and subrogation claims. This allows personal injury attorneys to add value to their cases and focus on providing quality representation to their clients. By outsourcing subrogation and lien resolution to our practice, personal injury attorneys can avoid the risk of malpractice and ensure that their clients receive the maximum possible recovery from their cases.
In personal injury cases, various entities may assert a right to reimbursement from a settlement. Each lien type comes with its own rules, requirements, and negotiation strategies. Clayton provides comprehensive lien resolution services designed to maximize client recovery and minimize delays. Below is a guide to the most common lien types we resolve:
Private Health Insurance Liens
Private insurers often assert a right of reimbursement when they have paid for injury-related medical treatment. These claims may be governed by contract language and state-specific laws. Identifying the recovery vendor, confirming authority, and analyzing policy terms are crucial to protecting your client’s recovery.
ERISA Lien Resolution
ERISA (Employee Retirement Income Security Act) plans often claim reimbursement rights that preempt state law. But not every plan qualifies.
We assist in:
- Determining whether a plan is truly ERISA-governed
- Requesting all required plan documents under 29 U.S.C. § 1024(b)(4)
- Analyzing plan language and applying case law to identify weaknesses
Preparing a resolution strategy for attorneys to negotiate from a position of strength
Clayton regularly teaches CLEs across the country on this topic, empowering firms to retain more for their clients.
Medicare
(Parts A & B)
Medicare asserts statutory recovery rights under the Medicare Secondary Payer Act (42 U.S.C. § 1395y(b)).
We manage the entire process:
- Reporting the case to Medicare
- Reviewing the Conditional Payment Letter
- Auditing related vs. unrelated claims
- Requesting reductions under 42 C.F.R. § 411.37
- Handling waiver, compromise, and appeal requests
Delays or errors can result in interest accrual or Treasury referrals. Proper navigation protects both client funds and attorney liability.
Medicare Advantage & Supplemental Plans
These plans, though private, may assert rights similar to traditional Medicare. However, enforcement and reductions vary significantly.
We provide:
- Verification of plan status
- Review of subrogation rights
- Dispute of unauthorized or inflated demands
Given their complex status under federal and state law, having a knowledgeable advocate can significantly impact the final lien amount.
Medicaid Lien Resolution
Medicaid is a state-administered program governed by federal rules. Each state has its own lien enforcement procedures.
We consider:
- State-specific Medicaid statutes and procedures
- Key Supreme Court decisions like Ahlborn, Wos, and Gallardo
- Opportunities for proportional reductions based on limited recoveries
Understanding the interplay between federal authority and state practice is critical for proper lien resolution.
FEHBA (Federal Employee Health Benefits Act)
FEHBA plans often assert reimbursement rights through their federal status. These liens can be difficult to challenge and are often aggressively pursued.
We evaluate:
- Plan documents and preemption claims
- Whether reductions or waivers may apply
- The proper interpretation of federal case law impacting lien validity
An experienced approach can ensure fair resolution and prevent overpayment.
VA / TRICARE Lien Resolution
Military healthcare liens, including VA and TRICARE, require special attention:
- The VA must issue billing before negotiation can begin
- Information requests often require extended follow-up
- TRICARE subrogation is handled through private vendors under complex federal authority
We identify coverage early, request beneficiary details, and allow sufficient time for resolution. These claims demand compliance, patience, and precision.
Hospital Liens
Hospital liens are often asserted for emergency services and are governed by state-specific statutes.
We evaluate:
- Whether the lien has been properly perfected
- Statutory caps and procedural errors
- Opportunities to dispute or reduce based on unrelated or inflated charges.
Quick identification and validation of hospital liens protect client recoveries and streamline settlement disbursement.
Outstanding Provider Bills
Not all providers assert formal liens, but unpaid balances can complicate settlements.
We assist by:
- Verifying treatment relevance
- Reviewing bills for accuracy
- Negotiating directly with providers to reduce balances
Even informal claims can significantly impact your client’s net recovery—early review makes a difference.
Workers' Compensation Liens
When workers’ compensation benefits are paid, the carrier may assert a lien under state law or contract.
We assist with:
- Reviewing statutory lien rights
- Confirming net recovery rules
- Evaluating settlement allocations (e.g., wage loss vs. medical)
Every state handles WC liens differently—ensure your client’s rights are preserved and lien obligations are properly satisfied.
Short-Term Disability Liens
Disability carriers may seek reimbursement from settlements for previously paid benefits.
We help:
- Verify contract terms and enforceability
- Evaluate whether the plan allows for subrogation
- Negotiate reductions or waivers where appropriate
Proper analysis helps prevent unnecessary repayment and maximizes your client’s final recovery.
Mass Tort Lien Resolution
Large-scale litigation (e.g., opioids, defective products, pharmaceuticals) involves multiple lienholders, including government programs, private insurers, and group plans.
We support firms by:
- Managing lien resolution across multiple claimants
- Streamlining communication with lienholders and administrators
- Ensuring compliance with global resolution programs and settlement protocols
The Lien Resolution Firm’s experience in mass torts ensures efficient administration and maximized client outcomes.