Alabama and states throughout the country apply what is called the “collateral source rule.” This law prevents a victim’s recovery from being reduced by benefits that were paid by a third-party source, such as a private health insurer or a state / federal health care program, such as Medicaid or Medicare. It cannot be declared that a victim’s damages are or will be paid in the future from a source outside the compensation provided by the Defendant. However, the third-party source may assert a lien on your recovery and seek reimbursement of the amounts provided. Some cases can result in undercompensation for the injury when the lien holder attempts to recover the full amount of your lien.

A third-party medical lien can involve complicated issues. In some cases, the healthcare insurer will seek to recover more than what they are entitled to receive under the law. The injured party may have to pay back what they obtained from their health insurance before collecting additional compensation. You definitely don’t want to be undercompensated for your pharmaceutical injury claim. That’s why it’s important to work with a law firm. Gaining legal assistance will help you understand what exactly your Medicare and Medicaid help is and how to get the most compensation possible after your injury. You need to have your medical expenses paid for and you shouldn’t have to wait until your pharmaceutical case is settled to get it. You also shouldn’t be penalized for gaining reimbursement through a state or federal health care program.