Household Lien Priority Settlement
Household Lien Priority Settlement asks what remains for the injured household after fees and liens. G.S. 44-50 lists attach upon settlement funds, a fifty percent (50%) cap exclusive of attorneys' fees, and an attorney carve-out. 29 U.S.C. § 1144 lists insurance savings and deemer; HealthCare.gov and KFF list the funding fork.
Last updated: September 9, 2026
Household Lien Priority Settlement
North Carolina G.S. 44-49 / 44-50 list hospital/provider lien attach, a fifty percent (50%) cap exclusive of attorneys' fees, and an attorney carve-out. 29 U.S.C. § 1144 lists preemption, insurance savings, and deemer. HealthCare.gov, KFF, and NAIC list the fully insured versus self-funded funding fork. Cornell WEX lists general subrogation and lien vocabulary. Those are competing published rules on a small pot.
| Claim | Listed | Source |
|---|---|---|
| NC hospital/provider lien created on PI recoveries | “there is hereby created a lien upon any sums recovered as damages for personal injury in any civil action in this State” | G.S. 44-49 |
| NC lien attaches to settlement funds | “A lien as provided under G.S. 44-49 shall also attach upon all funds paid to any person in compensation for or settlement of the injuries, whether in litigation or otherwise” | G.S. 44-50 |
| NC attorney's fees not interfered with by 44-49/50 lien | “Nothing in this section or in G.S. 44-49 shall be construed so as to interfere with any amount due for attorney's services” | G.S. 44-50 |
| NC provider lien cap 50% exclusive of attorneys' fees (household remainder relevant) | “The lien provided for shall in no case, exclusive of attorneys' fees, exceed fifty percent (50%) of the amount of damages recovered” | G.S. 44-50 |
| ERISA express preemption of state laws relating to employee benefit plans | “shall supersede any and all State laws insofar as they may now or hereafter relate to any employee benefit plan” | 29 U.S.C. § 1144 |
| Insurance savings clause (state laws regulating insurance survive) | “nothing in this subchapter shall be construed to exempt or relieve any person from any law of any State which regulates insurance, banking, or securities” | 29 U.S.C. § 1144 |
| Deemer clause fragment (plan not deemed insurer language) | “shall be deemed to be an insurance company or other insurer, bank, trust company, or investment company” | 29 U.S.C. § 1144 |
| Deemer applies to employee benefit plan described in §1003(a) | “Neither an employee benefit plan described in section 1003(a) of this title” | 29 U.S.C. § 1144 |
| Cornell WEX subrogation definition | “Subrogation is the process where one party assumes the legal rights of another” | Cornell WEX subrogation |
| Cornell WEX insurer may be subrogated after compensating policyholder | “when an insurance company compensates a policyholder for an injury , the policyholder's right to sue the person responsible for the harm may be subrogated” | Cornell WEX subrogation |
| Cornell WEX lien definition | “A lien is a security interest or legal right acquired in one's property by a creditor” | Cornell WEX lien |
| HealthCare.gov fully insured job-based plan definition | “A health plan purchased by an employer from an insurance company.” | HealthCare.gov fully insured |
| HealthCare.gov self-insured plan employer pays claims | “the employer itself collects premiums from enrollees and takes on the responsibility of paying employees’ and dependents’ medical claims” | HealthCare.gov self-insured |
| KFF self-funded = employer pays claims directly | “the employer pays enrollees’ medical claims directly” | KFF self-funded FAQ |
| KFF fully-insured = buys from state-regulated insurer | “where the employer buys coverage from a state-regulated insurance company” | KFF self-funded FAQ |
| KFF self-funded largely not required to comply with state insurance laws | “unlike fully-insured plans, self-funded coverage provided by private employers is largely not required to comply with state insurance laws” | KFF self-funded FAQ |
| NAIC ERISA does not preempt state insurance laws | “ERISA, however, does not preempt state insurance laws” | NAIC ERISA topic |
| NAIC self-funded exempt from state regulation | “pays directly out of plan assets (a “self-funded plan”), it is exempt from state regulation” | NAIC ERISA topic |
| NAIC insured plan purchases insurance | “purchases insurance to cover some or all of its benefit obligations (an “insured plan”)” | NAIC ERISA topic |
| NAIC dual regulatory framework | “The result is a dual regulatory framework” | NAIC ERISA topic |
| NAIC saving clause | “this is balanced by the “saving clause,” which allows states to enforce laws that regulate insurance, banking, or securities” | NAIC ERISA topic |
| NAIC deemer clause | “The “deemer clause” further limits state authority by preventing states from treating self-funded ERISA plans as insurers” | NAIC ERISA topic |
| Civil action to recover benefits under plan terms | “to recover benefits due to him under the terms of his plan” | 29 U.S.C. § 1132 |
| Welfare plan may provide benefits through insurance or otherwise | “through the purchase of insurance or otherwise” | 29 U.S.C. § 1002 |
| Welfare plan covers medical/surgical/hospital benefits | “medical, surgical, or hospital care or benefits” | 29 U.S.C. § 1002 |
| DOL ERISA sets minimum standards for retirement and health plans | “sets minimum standards for most voluntarily established retirement and health plans in private industry” | DOL ERISA |
Sources fetched September 9, 2026: G.S. 44-49, G.S. 44-50, 29 U.S.C. § 1144, 29 U.S.C. § 1132, 29 U.S.C. § 1002, HealthCare.gov fully insured, HealthCare.gov self-insured, KFF self-funded FAQ, NAIC ERISA topic, Cornell WEX subrogation, Cornell WEX lien, DOL ERISA.
Frequently asked questions
What is Household Lien Priority Settlement?
Household Lien Priority Settlement is the question of what remains for the injured household after attorney fees and medical liens on a small third-party pot. G.S. 44-50 states that a G.S. 44-49 lien shall also attach upon settlement funds and shall in no case, exclusive of attorneys' fees, exceed fifty percent (50%) of the amount of damages recovered. 29 U.S.C. § 1144 lists insurance savings and deemer rules; HealthCare.gov and KFF list the fully insured versus self-funded funding fork.
What does G.S. 44-50 list for household remainder on a small pot?
G.S. 44-50 states that a lien as provided under G.S. 44-49 shall also attach upon all funds paid to any person in compensation for or settlement of the injuries, whether in litigation or otherwise. It states that the lien provided for shall in no case, exclusive of attorneys' fees, exceed fifty percent (50%) of the amount of damages recovered. It also states that nothing in this section or in G.S. 44-49 shall be construed so as to interfere with any amount due for attorney's services.
What do 29 U.S.C. § 1144 savings and deemer clauses list?
29 U.S.C. § 1144 states that nothing in this subchapter shall be construed to exempt or relieve any person from any law of any State which regulates insurance, banking, or securities. It also states that neither an employee benefit plan described in section 1003(a) of this title shall be deemed to be an insurance company or other insurer. Those are published savings and deemer rules.
How do HealthCare.gov, KFF, and NAIC list the funding fork?
HealthCare.gov lists a fully insured job-based plan as a health plan purchased by an employer from an insurance company, and states that on a self-insured plan the employer takes on the responsibility of paying employees’ and dependents’ medical claims. KFF states that fully-insured employers buy coverage from a state-regulated insurance company while self-funded employers pay enrollees’ medical claims directly. NAIC states that the result is a dual regulatory framework.