Medical Liens in Texas
A lien is a legal claim against your personal injury settlement by a third party who paid for your medical treatment. In Texas, liens from hospitals, health insurers, Medicare, and Medicaid must be addressed before you receive your net settlement funds.
For informational purposes only. Not legal advice. Consult a licensed attorney.
Modified comparative fault (51% bar)
Fault System
2 years
Filing Deadline
$18,000 – $90,000
Avg Settlement
Types of Medical Liens in Texas
Hospital Liens
Texas hospitals that treated you for accident injuries may file a hospital lien against your settlement to recover unpaid bills. The lien attaches to your recovery before you are paid.
Health Insurance Subrogation
If your health insurer paid your medical bills, they have a subrogation right to be reimbursed from your settlement. Many states allow negotiation to reduce these amounts.
Medicare & Medicaid
Federal law requires Medicare and Medicaid liens to be paid in full — with limited exceptions. Your attorney must resolve these before settlement funds are distributed.
Workers' Compensation
If workers' comp covered your treatment for a work-related injury in Texas, they have a lien on any third-party recovery you obtain.
Texas Injury Law Overview
Texas applies modified comparative fault with a 51% bar. The 2-year statute of limitations is strictly enforced. Texas does not require no-fault PIP insurance, though it must be offered. Texas courts — particularly in Houston, Dallas, and the plaintiff-friendly Hidalgo County — handle enormous personal injury caseloads. Texas is one of the most litigated states for trucking accident cases given its vast highway network and role as a major freight corridor. Texas caps noneconomic damages in medical malpractice cases at $250,000 per defendant (capped at $500,000 total for hospitals) under Tex. Civ. Prac. & Rem. Code § 74.301. General personal injury cases have no noneconomic damage cap. Texas caps punitive damages at the greater of $200,000 or 2 times economic damages plus $750,000 of noneconomic damages under § 41.008. Texas courts follow Daubert standards. The Texas Workers' Compensation Act allows some employers to opt out of the system, creating unique litigation rights against non-subscriber employers.