What comes out before you are paid
Health insurers, Medicare, Medicaid, workers' compensation carriers, and some medical providers may have a right to be repaid from a personal injury settlement for what they covered. These liens and reimbursement claims are negotiable in many matters, but they have to be identified and resolved, and Medicare's interests in particular cannot be ignored. Attorney fees and case expenses are deducted under the retainer agreement. What actually reaches you is what remains after all of that, which is why an offer should be compared against a written breakdown rather than judged by the headline figure.
The release and the other terms
Settling almost always means signing a release, and its wording deserves attention. Some releases cover every party and every claim connected to the incident, including injuries that have not shown up yet, while others are narrower. Confidentiality, how and when the payment is made, and who is responsible for any remaining liens are all negotiated terms. When the injured person is a child, New York courts generally have to approve the settlement, and the money is often held in a restricted account until the child reaches adulthood. Federal tax treatment depends on what the payment is for, so ask a tax professional before assuming any part of it is tax-free.
Deciding whether to accept
Before accepting, you need a clear view of your medical future. Settling before your doctors understand the long-term effects of an injury can leave you paying for later treatment yourself. Bring the offer, any draft release, a list of the providers and insurers who paid for care, and your most recent medical records. We go through what the offer covers, what remains open, and whether the evidence supports pressing further or resolving now. The decision is yours, and we lay out the trade-offs on each side before you make it.
