What is an ERISA plan?
An ERISA plan is provided as a result of the Employee Retirement Income Security Act of 1974. The ERISA law ensures standard protection for individuals that are covered through these types of insurance policies, which are typically found in employer-funded plans. While there are many other provisions in the law, the ERISA lien provision is a something you should know about, as it may decrease the amount you receive from a settlement, should you be compensated in a personal injury case.
If you have an ERISA plan, it may affect the amount you receive after a settlement.
How does the ERISA lien affect your personal injury settlement?
If you’re injured in an accident and receive medical care through your health insurance, and later receive a personal injury settlement, your ERISA plan allows your health insurance company to put a lien on your settlement, to seek reimbursement costs for treatment you received.
Yes, you read that correctly. If you are injured in an accident and incur medical expenses that are paid for by an ERISA plan, the insurer can demand reimbursement for the money you receive in a personal injury settlement. This may mean some, most or even all of your settlement.
For this reason, it is essential to seek out a personal injury attorney who is experienced in dealing with ERISA plan liens.
If you’re injured in an accident and have an ERISA plan, our law firm is experienced on the subject.
Reach out to us for a free consultation. We’re here to help.