Hospital Liens vs. PIP and Health Plan Claims in Kansas

By the FigureMyTax Editorial Team · How we calculate

A Kansas hospital has a lien on the part of a recovery going to the patient. The first $5,000 is fully enforceable, the rest only to the extent of an equitable distribution, and it is valid only if notice is filed with the district court clerk before any money is paid.

The lien

K.S.A. 65-406 gives a hospital that furnished emergency, medical or other service to a patient injured in an accident not covered by workers' compensation a lien on that part of a recovery going to the patient, by judgment, settlement or compromise, for its reasonable and necessary charges up to the date of payment of damages. It does not prejudice your attorney's contract and does not apply to workers' compensation patients.

The $5,000 rule

If the claimed lien is $5,000 or less it is fully enforceable. If it is more, the first $5,000 is fully enforceable and the rest only to the extent that enforcement constitutes an equitable distribution of the settlement or judgment under the circumstances. If you and the hospital cannot agree, the court where the claim is pending, or any court with jurisdiction and venue, decides.

Notice

The lien is not effective unless written notice setting forth the amount of all the hospital's claims, your name, the accident date and the hospital's name and location is filed with the clerk of the district court of the hospital's county before any money is paid to you or your attorney, and a copy is sent to you by registered or certified mail if your address is known (65-407).

Payer liability

A person or insurer that pays you after the notice without paying the hospital stays liable to it for one year from the date of payment, and the hospital may sue within that year (65-408).

PIP insurers

A no-fault insurer is subrogated to duplicative PIP benefits paid and has a lien on your recovery, reduced by your percentage of negligence, and the court fixes attorney fees paid proportionately by the insurer and you (K.S.A. 40-3113a). If you do not sue within 18 months after the accident, that failure assigns the duplicative part of your claim to the PIP insurer.

Health plans and next steps

A health plan's claim is largely barred by regulation; see our post on the ban, the Medicare and Medicaid post and the Kansas medical lien calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Kansas's rules apply to your specific case with a licensed Kansas attorney.