Education
ERISA Liens and Pre-Settlement Funding: What to Know
• 2 min read
ERISA-controlled health plans can claim full reimbursement under U.S. Airways v McCutchen. Funding decisions account for this.
Health plans governed by ERISA — typically self-funded employer plans — can claim full reimbursement of what they paid for accident-related care, with limited reduction under most plan language.
After the Supreme Court's U.S. Airways v. McCutchen decision, plan language often controls. Strong plan language can require dollar-for-dollar reimbursement without reduction.
These liens can significantly reduce net recovery, particularly on cases with substantial medical treatment.
AARC's funding decisions account for ERISA lien exposure based on plan language and treatment costs.
Your attorney works to negotiate ERISA liens down where possible, but flexibility varies widely.
Call (800) 297-3834 for funding decisions that realistically account for ERISA exposure.
Frequently asked questions
- Will taking an advance reduce my settlement?
- The advance plus its flat fee is repaid out of the settlement, so your net proceeds are reduced by that amount. It does not affect the gross value your attorney negotiates.
- Is a pre-settlement cash advance a loan?
- No. It is non-recourse funding tied to your personal injury claim. There are no monthly payments, and if your case does not recover, you owe nothing.
- Do I need good credit or a job to qualify?
- No. AARC does not run a credit check and does not require employment or income verification. Approval is based on the strength of your claim and your attorney's representation.
- How fast can I get funded?
- Most approved applicants receive funds in as little as 24 hours once AARC has the case documents from your attorney.
- How much does it cost?
- AARC uses a flat fee rather than compounding monthly interest. Typical advances are $500, $750, or $1,000, and the illustrative payoff at settlement is 2x the advance amount.
About the author
Written by the funding team at AARC — Accident Advance & Resource Center. AARC underwrites pre-settlement cash advances for personal injury claimants and works directly with plaintiff attorneys across 45 states. Our team reviews case documentation daily and writes from that firsthand experience.
This article is general information, not legal or financial advice. Always confirm details with your attorney. Contact AARC or call (800) 297-3834 with questions about your specific case.
