In Michigan, it is your own vehicle insurer that should pay any crash related medical bills. So it is not typical to pay related medical bills out of the settlement of the personal injury/3rd party case, but rather to pay them out of the PIP/1st party case. So you likely need to get this concept straightened out in your mind by contacting your attorney for an explanation of the above. If there is indeed a valid lien held by a doctor, and the doctor will not settle on what you/your attorney consider to be a reasonable amount, then it is indeed proper for your attorney to hold the funds in escrow until there is a resolution of the lien. The doctor has 6 years within which to sue (contract statute) you for any unpaid bills. If the doctor doesn't sue within that time, then your attorney should be able to release the funds. Alternatively, you could ask your attorney to file a declaratory action vs. the doctor to ascertain the amount and reasonableness of the bill, but you would then have to pay for the attorney time, court costs, litigation costs, etc. and the economics of same probably wouldn't make sense. However, these are all things to discuss with your attorney.
Answered on Oct 31st, 2013 at 10:01 AM