Understanding Personal Injury Liens in Utah: Key Facts for Car Accident Settlements
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“Wondering if you must repay private health insurance after a Utah car accident settlement? Learn about personal injury liens in Utah and how Attorney Jake Gunter can help. Call (801) 373-6345 for a consultation.”
After a car accident, many people don’t realize that their private health insurer may require repayment from their settlement. Known as a personal injury lien, this requirement allows your insurer to recoup the costs of medical treatment. Personal injury liens in Utah impact many settlements, and knowing your obligations can help you avoid surprise expenses.
Do I Have to Repay My Private Health Insurer from My Settlement?
In most cases, yes. If your insurance policy allows it, your private health insurer can seek repayment from your personal injury settlement. This process, called subrogation, lets the insurer claim part of your settlement to cover medical expenses it paid on your behalf. Many people are surprised by this, but it’s a common practice based on the contract terms in your policy.
How Health Insurers Identify Personal Injury Cases
Health insurers actively look for signs that a personal injury settlement may apply to your claim. Claims processors, trained to identify injury cases, use medical billing codes and police report details to spot potential settlements. Once they flag a claim, the insurer usually sends your personal injury attorney a notice of lien, alerting them to the insurer’s right to reimbursement. This right arises from your insurance contract.
Personal Injury Protection (PIP) and Medical Coverage in Utah
In Utah, Personal Injury Protection (PIP) covers the first $3,000 of medical bills after a car accident, regardless of fault. PIP benefits, included in all Utah auto policies, act as primary coverage for medical expenses. If you sustained injuries on the job, Workers’ Compensation generally pays for your medical care instead of PIP.
When you exhaust PIP or Workers’ Compensation benefits, your private health insurance kicks in to cover remaining bills. At this point, any reimbursement clauses in your insurance policy will apply, and a personal injury lien may impact your settlement.
How Personal Injury Liens in Utah Affect Your Settlement
Personal injury liens directly reduce the amount of compensation you receive. Most health insurance policies include a clause that gives the insurer a right to reimbursement from your settlement. When the insurer notifies your attorney of this lien, they must withhold a portion of the settlement for repayment. If you or your attorney ignore the lien, the insurer can sue for repayment, often including attorney fees.
Example Case: In Montanile v. Board of Trustees of the National Elevator Industry Health Benefit Plan (2016), the insurer sued to recover medical expenses after the injured party received a personal injury settlement. This case underscores the importance of handling liens properly.
Can My Attorney Negotiate to Reduce the Lien?
Yes. In many cases, your Provo personal injury attorney can negotiate with the health insurer to lower the lien, especially if the attorney played a key role in securing the settlement. This process, called lien reduction, can increase the amount you receive. Many attorneys work with insurers to lower lien amounts, particularly when the settlement doesn’t cover total expenses.
Why Liens Are Critical in Personal Injury Cases
Liens are a serious matter in personal injury cases. An experienced attorney will watch for potential liens and take steps to address, reduce, or resolve them promptly. Paying liens on time helps avoid additional costs and keeps your settlement process clear. If you need help with personal injury liens in Utah, an attorney can protect your rights and ensure you receive fair compensation.
Contact Attorney Jacob S. Gunter for Help with Personal Injury Liens in Utah 
If you’re managing a personal injury lien after a Utah car accident, Attorney Jacob S. Gunter can help. He offers a free consultation to review your case and explain your rights under Utah law. With his experience in lien management, Attorney Gunter can protect your interests and work to maximize your settlement.
Call (801) 373-6345 for a free consultation, or visit provolawyers.com and gunterinjurylaw.com for more information.