Imagine this: You are severely injured in a car accident, you go to the hospital and undergo countless procedures, therapies, and treatments, you are told that you cannot work in your condition, and so, to cover the cost of your medical and living expenses, you file a personal injury claim. That is pretty standard protocol for car accident victims. What is not standard protocol is for the hospital at which a victim received the treatment to place a lien on the personal injury settlement, and for said hospital to collect on that lien when the money is awarded. Yet, Texas law allows just that.
Texas Hospital Lien Law
According to Sec. 55.002 LEINS, a hospital may place a lien on a cause of action or the claim of an individual who was treated at said hospital for injuries caused by an accident that was caused by a negligent person. However, the statute stipulates that in order for a lien to apply, the person must have sought care within 72 hours of the accident. The lien extends to a hospital or medical facility that the injured party is transferred to for treatment of the same injury.
Why Hospitals Do Not Just Bill Health Insurance Providers
You may be wondering why your hospital does not just bill your medical insurance provider. That is the same question many accident victims have, and it is one that has a very simple yet unsatisfactory answer. Hospitals would rather not bill insurance providers because doing so decreases their bottom line.
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