Resolving Medical Provider Liens: A Case Study on Defense Tactics

The Situation

Our Collection Team was diligently working to resolve a lien balance for our client in the case against 99 Cents Only Stores. Despite multiple follow-ups and assurances from the defense, the resolution was continually delayed. Eventually, the defense claimed that the employer's bankruptcy absolved them of responsibility, a tactic that can be misleading.

The Legal Reality

According to California law, if an employer files for bankruptcy, the workers' compensation claims filed prior to the bankruptcy are still the responsibility of the claims administrator. In this case, Athens Administrators remains accountable for the claim, regardless of 99 Cents Only Stores' financial status.

According to Labor Code Sections 3751, 3755, and 4900, the liability for workers' compensation claims is not affected by an employer's bankruptcy. These sections collectively ensure that the responsibility for compensation remains with the insurance carrier or claims administrator, regardless of the employer's financial condition, ensuring the claims are managed and paid out appropriately. Read the full text of Section 3751, Section 3755, and Section 4900.

Timeline of Delays

• December 2023 - January 2024: The Collection Team initiated contact with the defense, who responded with promises to resolve the matter soon.
• February - May 2024: Despite repeated follow-ups, the defense cited a lack of authority to resolve the lien, claiming to be waiting for updates.
• June 2024: The defense finally claimed that the bankruptcy of 99 Cents Only Stores absolved them of responsibility, contradicting the legal obligations of the claims administrator.

The Tactics at Play

Stalling and Delay: Repeatedly asking for more time and claiming to await authority or updates.

Bankruptcy Defense: Using the employer’s bankruptcy as an excuse to deny responsibility, despite the legal obligations.

Why It Matters

These tactics can significantly delay the resolution of workers' compensation cases, adding financial and emotional stress to injured workers. It's crucial for claimants and their representatives to be aware of their rights and the legal obligations of claims administrators.

Conclusion

This case highlights the need for vigilance and persistence in workers' compensation cases. At Medrina Technology Management, we are committed to ensuring that such tactics do not hinder the rightful claims of injured workers and medical providers. Claims administrators must be held accountable, and legal frameworks should be enforced to protect workers' rights, regardless of the employer's financial status.



Medrina Technology Management has always been at the forefront of protecting our clients' rights and ensuring they receive what is fairly owed to them. We understand the challenges and complexities of workers' compensation cases and are dedicated to providing the support and expertise needed to navigate these situations effectively. By understanding these tactics and the legal responsibilities involved, we can better advocate for our clients and ensure timely resolutions for their cases.