Can a Texas Hospital Lien Attach to Your PIP, MedPay, or Uninsured Motorist (UM/UIM) Check? (Prop. Code § 55.003(b))
Direct Answer Under Texas Law
NO! Under Texas Property Code § 55.003(b) and the Texas Supreme Court's holding in Members Mutual Insurance Co. v. Hermann Hospital, 664 S.W.2d 325 (Tex. 1984), a Chapter 55 Texas hospital lien or emergency-medical-services lien attaches ONLY to a third-party liability claim against the at-fault person—it expressly DOES NOT attach to Uninsured/Underinsured Motorist (UM/UIM) benefits, Personal Injury Protection (PIP) benefits, or Medical Payments (MedPay) coverage on an auto policy!
Critical Texas Procedural Trap to Watch Out For
Out-of-state hospital lien collection vendors (like MedData, Cardon, or Optum) sometimes send intimidating letters demanding payment out of a Texas claimant's UM/UIM settlement check—which is flatly prohibited by Tex. Prop. Code § 55.003(b)!
Recommended Action Plan for Texas Claimants
In a catastrophic crash with a $30,000 liability limit and a $100,000 UIM policy, remember that the hospital's Chapter 55 lien is capped at 50% of the $30,000 third-party recovery ($15,000 max under § 55.004(b)) and touches $0.00 of your $100,000 UIM check or your PIP check!
Detailed Texas Statutory & Case Law Breakdown
Under Tex. Prop. Code § 55.003(b) (Express Statutory Exemption for First-Party Coverage) and controlling Texas appellate precedent in Members Mutual Insurance Co. v. Hermann Hospital, 664 S.W.2d 325 (Tex. 1984), Texas trial and appellate courts apply strict statutory rules to this exact issue. Unlike generic multi-state legal summaries, Texas tort procedure under the Civil Practice and Remedies Code (CPRC), Insurance Code, Transportation Code, and Labor Code enforces specific statutory formulas—including the 51% proportionate responsibility bar (CPRC § 33.001), paid-or-incurred medical expense admissibility (CPRC § 41.0105 / Haygood), and mandatory statutory lien caps (Prop. Code Ch. 55 & Ins. Code Ch. 140).
Step-by-Step Texas Procedural Checklist
- Verify the exact statutory text of Tex. Prop. Code § 55.003(b) (Express Statutory Exemption for First-Party Coverage) and how Texas courts apply Members Mutual Insurance Co. v. Hermann Hospital, 664 S.W.2d 325 (Tex. 1984) in your county's appellate district.
- Beware of the Texas Procedural Trap: Out-of-state hospital lien collection vendors (like MedData, Cardon, or Optum) sometimes send intimidating letters demanding payment out of a Texas claimant's UM/UIM settlement check—which is flatly prohibited by Tex. Prop. Code § 55.003(b)!
- Execute the Texas Action Plan: In a catastrophic crash with a $30,000 liability limit and a $100,000 UIM policy, remember that the hospital's Chapter 55 lien is capped at 50% of the $30,000 third-party recovery ($15,000 max under § 55.004(b)) and touches $0.00 of your $100,000 UIM check or your PIP check!
- Preserve all physical, electronic, and medical billing records early so your CPRC § 18.001 affidavits and TRCP 194.2 Initial Disclosures are complete.
Frequently Asked Questions Under Texas Law
Can a Texas Hospital Lien Attach to Your PIP, MedPay, or Uninsured Motorist (UM/UIM) Check? (Prop. Code § 55.003(b))
NO! Under Texas Property Code § 55.003(b) and the Texas Supreme Court's holding in Members Mutual Insurance Co. v. Hermann Hospital, 664 S.W.2d 325 (Tex. 1984), a Chapter 55 Texas hospital lien or emergency-medical-services lien attaches ONLY to a third-party liability claim against the at-fault person—it expressly DOES NOT attach to Uninsured/Underinsured Motorist (UM/UIM) benefits, Personal Injury Protection (PIP) benefits, or Medical Payments (MedPay) coverage on an auto policy! Key Texas Trap to Avoid: Out-of-state hospital lien collection vendors (like MedData, Cardon, or Optum) sometimes send intimidating letters demanding payment out of a Texas claimant's UM/UIM settlement check—which is flatly prohibited by Tex. Prop. Code § 55.003(b)!
What Texas statute and Supreme Court / appellate precedent control can a hospital lien take your pip or um/uim money??
This question is governed in Texas by Tex. Prop. Code § 55.003(b) (Express Statutory Exemption for First-Party Coverage) and the legal standards articulated in Members Mutual Insurance Co. v. Hermann Hospital, 664 S.W.2d 325 (Tex. 1984). Recommended step: In a catastrophic crash with a $30,000 liability limit and a $100,000 UIM policy, remember that the hospital's Chapter 55 lien is capped at 50% of the $30,000 third-party recovery ($15,000 max under § 55.004(b)) and touches $0.00 of your $100,000 UIM check or your PIP check!
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