Interpleader-Trap-or-Opportunity
Why That's a Big Problem
I know some chiropractors are reading this and thinking, "Ya, that's what happens all the time ...what's the problem?" and attorneys thinking, "I do that on every case and I know there is nothing wrong with it...Irecovered the MedPay and I deserve a fee out of it." Here's the problem: it could be fraud.
It is worth noting that the situation is the same if instead of taking a fee on the MedPay, the attorney simplypasses the $1,000 on to the client. Unless the client paid that $1,000 for out of pocket, qualifying medialexpenses, the client is not entitled to MedPay funds any more than a lawyer is.
Why It's Happening – and What You Can Do About It
At this point you may be wondering why you've never heard of anyone facing discipline for this. My hunchis that it is such a common practice – and so difficult for an insurance company to track what happens to theMedPay funds once they are dispersed to the attorney (ostensibly to be held for or immediately disbursed tothe medical provider) – that no one is shedding light on such transgression.
If your MedPay is being sabotaged by a PI lawyer, push back. Explain to them why what they are doing iswrong. If they don't yield, push harder. This system simply needs to change and chiropractors are in theperfect position to do something about it.
Alexander Eisner is an attorney and head of the litigation department at Shawn Steel Law Firm. His firm iscredited with creating a new field of law by defending chiropractors and acupuncturists and representingtheir patients in personal-injury matters. Alexander is a graduate of The George Washington University andLoyola Law School.
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