What is the Illinois Healthcare Services Lien Act and How Can It Affect My Personal Injury Settlement Amount?

Medical CareIf you have successfully employed an Illinois personal injury attorney and achieved a settlement or won your case by trial, it is important to realize that you may not be able to keep the full amount due to liens from medical providers. Medical providers are able to recoup their costs for treating you from your settlement by way of liens, but the Illinois Healthcare Services Lien Act keeps them from claiming the entirely of your award.

How Does the Healthcare Services Lien Act Work?

Liens are often a hurdle for both plaintiffs and defendants when negotiating a settlement, but the Healthcare Services Lien Act limits what the lien holders can claim. The act defines two categories of healthcare services:

  • Healthcare professionals, which are individuals such as doctors and dentists.
  • Healthcare providers, which are entities such as hospitals and treatment centers.

The crux of the Illinois Healthcare Lien Act is that it limits the total liens from both categories of lien holders to 40% of the plaintiff’s recovery, and also limits an individual category of lien holder to a maximum of 33% of the recovery. In instances where the total liens exceed 40%, each category of lien holder will receive 20% of the plaintiff’s recovery.

For examples, if a plaintiff receives an award of $100,000, the maximum that all lien holders together could claim is $40,000. While this may seem like a great deal of money, the Healthcare Services Lien Act was put in place to ensure that lien holders could not claim the entirety of a plaintiff’s award.

This is a simplified explanation of a complex law, and the exact circumstances and amounts will vary on a case-by-case basis. Before you can consider the amount you will receive by pursuing a personal injury claim, you must consult an experienced attorney and discuss how to move forward.

Rubens and Kress Specializes in Personal Injury Cases

Rubens and Kress is a Chicago law firm with a track record of success in personal injury cases. If you have been the victim of a personal injury, the attorneys at Rubens and Kress will fight to help you get the compensation you deserve. There is absolutely no fee unless you collect.

To discuss your options, contact Rubens and Kress online, at 312-201-9640, or toll-free at 866-890-9640.