Senate File 546 - Reprinted



                                       SENATE FILE       
                                       BY  COMMITTEE ON JUDICIARY

                                       (SUCCESSOR TO SSB 1144)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to a hospital lien.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 SF 546
  4 rh/cc/26

PAG LIN



  1  1    Section 1.  NEW SECTION.  582.0A  DEFINITIONS.
  1  2    1.  "Health plan" means an individual or group plan that
  1  3 provides, or pays the costs of, medical care as that term is
  1  4 defined in the federal Health Insurance Portability and
  1  5 Accountability Act of 1996, Pub. L. No. 104=191 and
  1  6 regulations promulgated thereunder.
  1  7    2.  "Hospital" means a public or private institution
  1  8 licensed pursuant to chapter 135B.
  1  9    3.  "Provider agreement" means a contract, understanding,
  1 10 or arrangement made by an association, corporation, county,
  1 11 municipal corporation, or other institution maintaining a
  1 12 hospital in the state, with any health plan or other entity
  1 13 for the provision or payment of health care services.
  1 14    Sec. 2.  Section 582.1, Code 2007, is amended to read as
  1 15 follows:
  1 16    582.1  NATURE OF LIEN.
  1 17    1.  Every association, corporation, county, municipal
  1 18 corporation, or other institution, including a municipal
  1 19 corporation, maintaining a hospital in the state, which shall
  1 20 furnish medical or other service to any patient injured by
  1 21 reason of an accident not covered by the workers' compensation
  1 22 Act, shall, if such injured party shall assert or maintain a
  1 23 claim against another for damages on account of such injuries,
  1 24 have a lien upon that part going or belonging to such patient
  1 25 of any recovery or sum had or collected or to be collected by
  1 26 such patient, or by the patient's heirs or personal
  1 27 representatives in the case of the patient's death, whether by
  1 28 judgment or by settlement or compromise to the amount of the
  1 29 reasonable and necessary charges of such hospital for the
  1 30 treatment, care, and maintenance of such patient in such
  1 31 hospital up to the date of payment of such damages; provided,
  1 32 however, that this to the amount of the reasonable and
  1 33 customary charges of such hospital for the treatment, care,
  1 34 and maintenance of such patient in such hospital up to the
  1 35 date of payment of such damages, except as provided in
  2  1 subsection 2.
  2  2    2.  If a patient provides proof of insurance coverage under
  2  3 a health plan within thirty days of the patient's discharge
  2  4 from a hospital, the hospital shall submit all charges to the
  2  5 patient's health plan prior to filing the notice of the lien
  2  6 pursuant to section 582.2.  The patient's health plan shall
  2  7 not deny payment for medical services received on the basis
  2  8 that a third party or other insurance carrier is responsible
  2  9 for the patient's injuries.  If the health plan is not subject
  2 10 to the payment requirement under this subsection due to
  2 11 federal preemption and the claim is denied because a third
  2 12 party is or may be liable for the patient's injuries, the
  2 13 health plan provider shall provide the hospital and the
  2 14 patient with a statement detailing the amount the health plan
  2 15 would have paid for the medical services provided and the
  2 16 amount the patient would have been responsible for had the
  2 17 claim not been denied.  A health plan provider's failure to
  2 18 provide a statement shall not affect the limitations on a
  2 19 hospital lien pursuant to this section.  This subsection shall
  2 20 not prohibit a hospital from filing notice of a lien pursuant
  2 21 to section 582.2 for the amount owed to the hospital due to
  2 22 patient responsibility including but not limited to
  2 23 deductibles, co=payments, and coinsurance.
  2 24    3.  If at any time subsequent to the filing of the notice
  2 25 of the lien a hospital receives health plan information
  2 26 regarding a patient, the hospital shall not be required to
  2 27 withdraw notice of the lien but shall submit the hospital's
  2 28 charges to the health plan.  In such a case, the amount of the
  2 29 hospital's lien shall be limited pursuant to subsection 2.
  2 30    4.  The lien shall not in any way prejudice or interfere
  2 31 with any lien or contract which may be made by such patient or
  2 32 the patient's heirs or personal representatives with any
  2 33 attorney or attorneys for handling the claim on behalf of such
  2 34 patient, the patient's heirs, or personal representatives;
  2 35 provided, further, that the lien herein set forth shall not be
  3  1 applied or considered valid against anyone coming under a
  3  2 patient covered under the workers' compensation Act in this
  3  3 state pursuant to chapters 85, 85A, and 85B.
  3  4    5.  A hospital that recovers from a judgment, verdict, or
  3  5 settlement pursuant to this chapter shall be responsible for
  3  6 the pro rata share of the legal and administrative expenses
  3  7 incurred in obtaining the judgment, verdict, or settlement.
  3  8    Sec. 3.  Section 582.2, Code 2007, is amended to read as
  3  9 follows:
  3 10    582.2  WRITTEN NOTICE OF LIEN.
  3 11    No such lien shall be effective, however, unless a written
  3 12 notice containing the name and address of the injured person,
  3 13 the date of the accident, the name and location of the
  3 14 hospital, and the name of the person or persons, firm or
  3 15 firms, corporation or corporations alleged to be liable to the
  3 16 injured party for the injuries received, shall be filed in the
  3 17 office of the clerk of the district court of the county in
  3 18 which such hospital is located, prior to the payment of any
  3 19 moneys to such injured person, the person's attorneys or legal
  3 20 representative, as compensation for such injuries; nor unless
  3 21 the hospital shall also mail, postage prepaid, a copy of such
  3 22 notice with a statement of the date of filing thereof to the
  3 23 person or persons, firm or firms, corporation or corporations
  3 24 alleged to be liable to the injured party for the injuries
  3 25 sustained prior to the payment of any moneys to such injured
  3 26 person, the person's attorneys or legal representative, as
  3 27 compensation for such injuries.  Such hospital shall mail a
  3 28 copy of such notice to any insurance carrier which has insured
  3 29 such person, firm or corporation against such liability, if
  3 30 the name and address shall be known.  Such hospital shall also
  3 31 mail a copy of such notice to the injured person or to the
  3 32 injured person's attorney or legal representative, if known.
  3 33    Sec. 4.  Section 582.3, Code 2007, is amended to read as
  3 34 follows:
  3 35    582.3  DURATION AND ENFORCEMENT OF LIEN.
  4  1    1.  Any person or persons, firm or firms, or corporation or
  4  2 corporations, including an insurance carrier, making any
  4  3 payment to such patient or to the patient's attorneys or heirs
  4  4 or legal representatives as compensation for the injury
  4  5 sustained, after the filing and mailing of such notice without
  4  6 paying to such hospital the amount of its lien recoverable
  4  7 pursuant to section 582.1 from such person, firm, or
  4  8 corporation or so much thereof as can be satisfied out of the
  4  9 moneys due under any final judgment or compromise or
  4 10 settlement agreement, after paying the amount of any prior
  4 11 liens, shall, for a period of one year from the date of
  4 12 payment to such patient or the patient's heirs, attorneys, or
  4 13 legal representatives, as aforesaid, be and remain liable to
  4 14 such hospital for the amount which such hospital was entitled
  4 15 to receive as aforesaid; any such association, corporation, or
  4 16 other institution maintaining such hospital may, within such
  4 17 period, enforce its lien by a suit at law against such person
  4 18 or persons, firm, or firms, corporation or corporations making
  4 19 any such payment.
  4 20    2.  Prior to payment by a person, firm, or corporation,
  4 21 including an insurance carrier, to a patient's attorney, the
  4 22 patient's attorney may notify the person, firm, or corporation
  4 23 that will be making the payment that the attorney agrees to
  4 24 assume responsibility for the satisfaction of some or all
  4 25 liens of which the person, firm, or attorney has received
  4 26 notice pursuant to section 582.2.  Upon receipt of such
  4 27 notification by the patient's attorney, such person, firm, or
  4 28 corporation shall provide the patient's attorney with copies
  4 29 of any lien notice relating to a hospital lien for which the
  4 30 attorney has agreed to assume responsibility and such person,
  4 31 firm, or corporation shall not thereafter be responsible to
  4 32 any hospital encompassed by such notification.  A patient's
  4 33 attorney who so notifies a person, firm, or corporation and
  4 34 who receives a copy of any lien notice encompassed by such
  4 35 notification from the person, firm, or corporation shall pay
  5  1 such hospital the amount to which the hospital is entitled
  5  2 pursuant to section 582.1 from the amount received from the
  5  3 person, firm, or corporation.  If there is a dispute
  5  4 concerning the amount owed to a hospital pursuant to section
  5  5 582.1, a patient's attorney shall hold in trust the maximum
  5  6 amount to which the hospital may be entitled pursuant to
  5  7 section 582.1 and may disburse any other amounts to the
  5  8 patient, attorney, or other persons entitled to the funds.
  5  9 Any dispute concerning the amount owed to a hospital pursuant
  5 10 to section 582.1 shall be resolved by the court in which the
  5 11 patient filed an action to recover for the patient's injury
  5 12 and the court shall retain jurisdiction of the case to resolve
  5 13 the amount of the lien after dismissal of the action.  If no
  5 14 such action was commenced by the patient, a court in which
  5 15 such action could have been brought shall have jurisdiction to
  5 16 determine the amount owed to the hospital.
  5 17 SF 546
  5 18 rh:sc/cc/26