A headline settlement number isn't what reaches your pocket. Liens can take a significant bite — unless they're managed well.
What Is a Lien?
A lien is a legal claim against your settlement by someone who paid for your care — a health insurer, a hospital, Medicare, or Medicaid. They have a right to be reimbursed from your recovery.
Types of Liens in Colorado
Common liens include health insurance subrogation, hospital liens, and government program liens (Medicare/Medicaid). Each has its own rules about how much can be recovered.
Negotiating Liens Down
Lienholders will often accept less than the full amount, especially when the available insurance is limited. Skilled negotiation here can put thousands more dollars in your pocket.
Why Net Recovery Is the Real Number
Always look at what you keep after fees, costs, and liens. An attorney who aggressively reduces liens may deliver a better net result than a higher gross settlement would otherwise.
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This article is for general informational purposes only and is not legal advice. For guidance on your specific situation, consult a licensed Colorado attorney.