What is a medical lien?

A medical lien is a form of financial security that is used in accident law in North Carolina. It is a legal agreement between a medical provider and an injured person’s insurance company or other party who is responsible for compensating the injured person for any costs associated with their injuries. A medical lien allows the injured person to receive the necessary medical care and treatment without having to pay out-of-pocket costs. Instead, the medical provider would place a lien on the compensation to be paid out and would be repaid from the proceeds of the case. Medical liens are used when the compensation for the injuries is in dispute or is not completely agreed upon between the insurance company and the injured person. A medical lien also allows the injured person to pay the medical expenses over time if the case is not resolved quickly. However, the lien must be paid off first before any other money is distributed. Medical liens are an important tool in accident law in North Carolina and are used to help injured people access necessary medical care while their cases are pending or unresolved. In addition, a medical lien provides some degree of financial security for the medical provider and allows them to ensure that they are properly and adequately compensated for the services provided.

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