When you suffer an injury and pursue compensation through a personal injury case, your medical treatment becomes a critical piece of evidence.
But what happens to your medical privacy when a medical lien is involved? It’s a valid concern, especially when multiple parties like lienholders, attorneys, or legal funding companies start requesting access to your medical records.
Understanding your rights under HIPAA and how to protect your medical confidentiality during this process is key.
A medical lien is a legal claim placed on your personal injury settlement by a healthcare provider or third-party medical lender.
It allows injured individuals to receive necessary treatment without paying upfront. Instead, payment is deferred until the case is resolved and the settlement is awarded.
Medical liens are common in personal injury cases where the injured party lacks health insurance or the financial ability to pay medical bills during recovery. The lien ensures the provider is reimbursed once the case settles.
When a medical lien is in place, some level of medical record sharing is required. Lienholders—whether they’re healthcare providers or legal funding companies—may need access to your health records to verify the services they rendered and ensure proper reimbursement.
Likewise, attorneys handling your personal injury case need medical records to prove the extent of your injuries, while insurance companies may request documents during negotiations.
Still, this access isn’t a free-for-all. Only relevant portions of your records tied directly to the lien and the injury in question are shared.
Health Insurance Portability and Accountability Act (HIPAA) is a federal law that safeguards your medical confidentiality. Even in the context of a personal injury case, and even when a lien is in place, your rights under HIPAA remain fully intact.
Protected Health Information (PHI) cannot be disclosed without your express written consent. Legal funding companies, lienholders, and attorneys must have proper authorization to access your health information.
HIPAA ensures that only the minimum necessary information is shared, helping to preserve your privacy.
When managing a personal injury case with a medical lien, only specific, relevant medical information is typically shared:
Unrelated health records or unrelated pre-existing conditions should remain confidential. It’s important to know that your attorney plays a gatekeeping role, controlling what information is disclosed and to whom.
Legal funding companies may offer cash advances to personal injury plaintiffs in exchange for a portion of the future settlement.
To assess whether funding can be approved, these companies often review medical documentation and any existing liens on the case.
The review process is HIPAA-compliant when handled by reputable companies. At Fund Capital America, for instance, every effort is made to ensure patient rights and privacy protections are upheld. No access is granted without your consent, and only pertinent information is reviewed.
You don’t have to sacrifice your privacy to pursue justice. Here are a few tips to safeguard your medical confidentiality:
Remember, having a lien doesn’t mean you lose control over your health records.
While a medical lien plays a necessary role in many personal injury cases, it does not strip you of your rights.
Your medical privacy is still protected by HIPAA, and only limited, relevant health records should be disclosed.
By staying informed and partnering with trusted professionals, you can ensure your personal information stays secure while still getting the financial and medical support you need.
Since 2006, Fund Capital America (FCA) has been a trusted leader in pre-settlement funding, providing cash advance loans to plaintiffs in personal injury and accident cases. Over the years, FCA has proudly served thousands of law firms and tens of thousands of clients, helping them navigate the financial challenges of litigation. While our core service is pre-settlement funding, we also offer a comprehensive range of services to support law firms and their clients from the beginning of the case to the final settlement check distribution.
In addition to pre-settlement funding, FCA provides a broad array of services designed to alleviate the financial and administrative burdens on injury victims, law firms, and medical professionals. Our services include:
Here's how it works:
Fill out our application form: It takes just 5 minutes to provide the necessary details about your case.
Get prequalified: Our team will review your application and get back to you swiftly, often within hours.
Need assistance? Call us at the number provided for immediate support from our knowledgeable staff.
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