Attorneys beware--watch out for those subrogation liens.
Two days ago, the Sixth Circuit Court of Appeals affirmed a summary judgment where a plaintiff's attorney was found liable to the ERISA health plan for settlement funds he disbursed. A fellow blogger, Health Plan Law, has a great discussion of the case here.
For those with personal injury lawsuits, if your health insurance company pays for your medical and you ultimately recover money from the person who caused those injuries, your health insurance company has a subrogation lien for the amount of medical paid. That means you could possibly have to pay the insurance company for the amount it paid for medical expenses you ultimately recovered from the liable party.
In the case above, the client did recover monies and the attorney disbursed the settlement funds without paying the insurance company back for the medical it paid on behalf of the client. The plan ultimately sued the client and attorney for the money. Lesson to all parties. Prior to settling a personal injury case or disbursing funds from a personal injury settlement, make sure you have paid all liens.
Reported by: Robert Kisselburgh, Mississippi Accident Injury Lawyer
