House File 540 - Reprinted HOUSE FILE 540 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 92) (As Amended and Passed by the House March 15, 2011 ) A BILL FOR An Act creating the health care professional lien Act. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 HF 540 (5) 84 rh/rj/mb

H.F. 540 Section 1. NEW SECTION . 582A.1 Short title. 1 This Act may be cited as the “Health Care Professional Lien 2 Act” . 3 Sec. 2. NEW SECTION . 582A.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Health care professional” means a person licensed 7 pursuant to chapter 148, 148A, 148C, 149, 151, or 153, or an 8 advanced registered nurse practitioner licensed under chapter 9 152 and registered with the board of nursing. 10 2. “Health insurance” means benefits consisting of 11 health or dental care provided directly, through insurance, 12 reimbursement, or otherwise, and including items and services 13 paid for as health care under a hospital or health service 14 policy or certificate, hospital or health service plan 15 contract, or health maintenance organization contract offered 16 by a carrier, including limited scope dental benefits provided 17 under a separate policy; provided however, “health insurance” 18 does not include any of the following: 19 a. Coverage for accident-only, or disability income 20 insurance. 21 b. Coverage issued as a supplement to liability insurance. 22 c. Liability insurance, including general liability 23 insurance and automobile liability insurance. 24 d. Workers’ compensation or similar insurance. 25 e. Automobile medical-payment insurance. 26 f. Credit-only insurance. 27 g. Coverage for on-site medical clinic care. 28 h. Benefits covering only long-term care, nursing home care, 29 home health care, or community-based care. 30 i. Limited scope vision benefits provided under a separate 31 policy. 32 j. Coverage only for a specified disease or illness. 33 k. A hospital indemnity or other fixed indemnity insurance. 34 l. Other similar insurance coverage, as specified in federal 35 -1- HF 540 (5) 84 rh/rj/mb 1/ 5

H.F. 540 regulations or by rule of the commissioner of insurance, under 1 which benefits for medical care are secondary or incidental to 2 other insurance coverage or provide for coverage of limited 3 scope benefits other than limited scope dental benefits. 4 Sec. 3. NEW SECTION . 582A.3 Lien created. 5 1. Every health care professional who renders any service 6 in the treatment, care, or maintenance of any injured patient 7 shall have a lien upon all claims and causes of action 8 of the injured patient for the amount of the health care 9 professional’s charges up to the date of payment of damages to 10 the injured patient, if the injured patient meets the following 11 requirements: 12 a. The patient’s injuries are due to an accident or 13 intentional act by a third party, which is not covered by the 14 workers’ compensation Act in chapter 85, 85A, or 85B. 15 b. Either of the following: 16 (1) The patient does not have health insurance. 17 (2) The patient’s health insurance carrier has denied 18 payment for services provided by the health care professional 19 and the health care professional is not prohibited from 20 pursuing payment from the patient under the terms of any 21 agreement between the health care professional and the 22 patient’s health insurance carrier. 23 2. The injured patient or the injured patient’s legal 24 representative or attorney shall notify the health care 25 professional at the time services are rendered, or as soon 26 as practicable thereafter, that the patient’s injuries were 27 sustained in an accident or were the result of an intentional 28 act by a third party. In addition, the notification shall 29 include the date of the accident or intentional act, the 30 persons, entities, or insurers allegedly liable for the injured 31 patient’s damages, and the name and contact information for the 32 injured patient’s attorney or legal representative, if any. 33 Sec. 4. NEW SECTION . 582A.4 Written notice of lien. 34 A lien shall not be effective unless a written notice 35 -2- HF 540 (5) 84 rh/rj/mb 2/ 5

H.F. 540 containing the name and address of the injured patient, the 1 date of the accident or intentional act, the name and address 2 of the health care professional, and the name of the party 3 allegedly liable for the injured patient’s damages is served on 4 both the injured patient and the party against whom the claim 5 or right of action exists. Service shall be made by certified 6 mail or restricted certified mail, as defined in section 7 618.15, or in person. A copy of the notice shall be mailed 8 to the injured patient’s attorney or legal representative 9 provided the patient has previously provided the health 10 care professional with the name and address of the patient’s 11 attorney or legal representative. 12 Sec. 5. NEW SECTION . 582A.5 Lien payments. 13 Payments under the lien created under this chapter shall be 14 made directly to the health care professional. 15 Sec. 6. NEW SECTION . 582A.6 Items to which lien attaches 16 —— enforcement. 17 1. A health care professional’s lien under this chapter 18 shall, from and after the time of the service of the lien 19 notice, attach to any verdict, judgment, award, settlement, 20 or compromise secured by or on behalf of the injured 21 patient related to the injuries treated by the health care 22 professional. If the verdict, judgment, award, settlement, or 23 compromise is to be paid over time by means of an annuity or 24 otherwise, any lien under this chapter shall be satisfied by 25 the party obligated to compensate the injured patient before 26 the establishment of the annuity or other extended payment 27 mechanism. 28 2. a. A settlement made by and between the patient and 29 the persons, entities, or insurers allegedly liable for the 30 injured patient’s damages shall not discharge the lien against 31 any money due or owing by such person, entity, or insurer to 32 the patient or relieve the person, entity, or insurer from 33 liability by reason of such lien unless any of the following 34 apply: 35 -3- HF 540 (5) 84 rh/rj/mb 3/ 5

H.F. 540 b. The settlement also provides for the payment and 1 discharge of such lien. 2 c. A written release or waiver of any such claim of lien 3 is signed by the health care professional and either of the 4 following apply: 5 (1) The written release or waiver is filed in the court 6 where an action has been commenced against the persons, 7 entities, or insurers allegedly liable for the injured 8 patient’s damages. 9 (2) The written release or waiver is delivered by certified 10 mail or restricted certified mail, as defined in section 11 618.15, or in person to such persons, entities, or insurers 12 allegedly liable for the injured patient’s damages, if no court 13 action has been commenced against the persons, entities, or 14 insurers allegedly liable for the injured patient’s damages. 15 3. a. After the filing and mailing of a health care 16 professional’s lien notice, any person, entity, or insurer 17 who makes any payment to an injured patient or to the injured 18 patient’s attorneys, heirs, or legal representatives as 19 compensation for the injury sustained from the accident or 20 intentional act without paying the health care professional 21 the amount of the health care professional’s lien recoverable 22 pursuant to section 582A.3, or so much thereof as can be 23 satisfied out of the money due under any final judgment or 24 compromise or settlement agreement, shall, for a period of one 25 year from the date of payment to such patient or the patient’s 26 heirs, attorneys, or legal representatives, be liable to such 27 health care professional for the amount of the health care 28 professional’s outstanding lien. The health care professional 29 may, within such one-year period, enforce the lien by filing an 30 action at law against such person, entity, or insurer making 31 any such payment. 32 b. In any action filed by a health care professional 33 pursuant to paragraph “a” to enforce the lien, the health care 34 professional shall be entitled to recover reasonable attorney 35 -4- HF 540 (5) 84 rh/rj/mb 4/ 5

H.F. 540 fees and the costs of any such action. 1 4. In the case of multiple claims to payments filed under 2 this chapter and chapter 582, priority shall be given to 3 hospital liens filed pursuant to chapter 582. 4 -5- HF 540 (5) 84 rh/rj/mb 5/ 5