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SB19-217

Healthcare Provider Liens

Concerning healthcare provider liens related to charges for medical care provided to a person injured as a result of the negligence or wrongful acts of another person.
Session:
2019 Regular Session
Subjects:
Civil Law
Health Care & Health Insurance
Bill Summary

The bill establishes requirements for the creation of a healthcare provider lien. A healthcare provider lien is a lien related to charges for medical care provided to a person injured by the negligence or wrongful act of another person, which is asserted against money the injured person may receive from a personal injury claim or uninsured motorist claim. A healthcare provider or healthcare provider's assignee creating a lien must advise the injured person of their options for payment, including the use of benefits from an insurance plan or other payer of benefits, before or at the time of creating the lien. Before a person signs an agreement creating a healthcare provider lien, the healthcare provider or its assignee is required to disclose to the injured party that the healthcare provider is not a health insurer or payer of benefits, that unlike a health insurer or payer of benefits the lienholder is entitled to receive the full amount of the lien even if the injured party is not fully compensated from a settlement or judgment, that the lienholder is not required to contribute to the injured party's legal fees or costs, that the lienholder's compensation is based on the difference between the total amount of the medical bills and the negotiated amount, and of any business interests between the lienholder and the injured party's legal counsel or healthcare providers.

The lienholder is required to provide notice to the injured party of the amounts billed under the lien as they are accrued, to the extent practicable, and to provide a final itemized statement that includes a summary of treatment provided, the amounts billed, and the total amount due and owing.

The lien amount cannot include any additional amounts over the amount of the charges for services provided, billed at the provider's usual and customary rates. Except in the event of fraud by the injured party, the lienholder may only assign to a collection agency or debt collector an amount equal to the total amount actually paid to healthcare providers.

A healthcare provider may assign a lien to another person or entity. The fact of the assignment, its terms, and the amount paid by the assignee is not discoverable or admissible as evidence in any third-party or first-party action, except in an action under the "Uniform Consumer Credit Code".

The provisions of the bill do not apply to hospital liens.


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Status

Introduced
Under Consideration

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Bill Text

Sponsors

Sponsor Type Legislators
Prime Sponsor

Sen. M. Foote, Sen. J. Tate
Rep. R. Bockenfeld, Rep. M. Snyder

Sponsor

Co-sponsor

Sen. L. Crowder, Sen. R. Fields, Sen. J. Smallwood
Rep. T. Exum