HOUSE FILE 540

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO HSB 92)

(As Amended and Passed by the House 2011-03-15)

A BILL FOR

An Act creating the health care professional lien Act.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  NEW SECTION.  582A.1  Short title.
   This Act may be cited as the “Health Care Professional Lien Act”.
   Sec. 2.  NEW SECTION.  582A.2  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Health care professional” means a person licensed pursuant to chapter 148, 148A, 148C, 149, 151, or 153, or an advanced registered nurse practitioner licensed under chapter 152 and registered with the board of nursing.
   2.  “Health insurance” means benefits consisting of health or dental care provided directly, through insurance, reimbursement, or otherwise, and including items and services paid for as health care under a hospital or health service policy or certificate, hospital or health service plan contract, or health maintenance organization contract offered by a carrier, including limited scope dental benefits provided under a separate policy; provided however,“health insurance”does not include any of the following:
   a.  Coverage for accident-only, or disability income insurance.
   b.  Coverage issued as a supplement to liability insurance.
   c.  Liability insurance, including general liability insurance and automobile liability insurance.
   d.  Workers’ compensation or similar insurance.
   e.  Automobile medical-payment insurance.
   f.  Credit-only insurance.
   g.  Coverage for on-site medical clinic care.
   h.  Benefits covering only long-term care, nursing home care, home health care, or community-based care.
   i.  Limited scope vision benefits provided under a separate policy.
   j.  Coverage only for a specified disease or illness.
   k.  A hospital indemnity or other fixed indemnity insurance.
   l.  Other similar insurance coverage, as specified in federal regulations or by rule of the commissioner of insurance, under which benefits for medical care are secondary or incidental to other insurance coverage or provide for coverage of limited scope benefits other than limited scope dental benefits. 
   Sec. 3.  NEW SECTION.  582A.3  Lien created.
   1.  Every health care professional who renders any service in the treatment, care, or maintenance of any injured patient shall have a lien upon all claims and causes of action of the injured patient for the amount of the health care professional’s charges up to the date of payment of damages to the injured patient, if the injured patient meets the following requirements:
   a.  The patient’s injuries are due to an accident or intentional act by a third party, which is not covered by the workers’ compensation Act in chapter 85, 85A, or 85B.
   b.  Either of the following:
   (1)  The patient does not have health insurance.
   (2)  The patient’s health insurance carrier has denied payment for services provided by the health care professional and the health care professional is not prohibited from pursuing payment from the patient under the terms of any agreement between the health care professional and the patient’s health insurance carrier.
   2.  The injured patient or the injured patient’s legal representative or attorney shall notify the health care professional at the time services are rendered, or as soon as practicable thereafter, that the patient’s injuries were sustained in an accident or were the result of an intentional act by a third party. In addition, the notification shall include the date of the accident or intentional act, the persons, entities, or insurers allegedly liable for the injured patient’s damages, and the name and contact information for the injured patient’s attorney or legal representative, if any.
   Sec. 4.  NEW SECTION.  582A.4  Written notice of lien.
   A lien shall not be effective unless a written notice containing the name and address of the injured patient, the date of the accident or intentional act, the name and address of the health care professional, and the name of the party allegedly liable for the injured patient’s damages is served on both the injured patient and the party against whom the claim or right of action exists. Service shall be made by certified mail or restricted certified mail, as defined in section 618.15, or in person. A copy of the notice shall be mailed to the injured patient’s attorney or legal representative provided the patient has previously provided the health care professional with the name and address of the patient’s attorney or legal representative.
   Sec. 5.  NEW SECTION.  582A.5  Lien payments.
   Payments under the lien created under this chapter shall be made directly to the health care professional.
   Sec. 6.  NEW SECTION.  582A.6  Items to which lien attaches —— enforcement.
   1.  A health care professional’s lien under this chapter shall, from and after the time of the service of the lien notice, attach to any verdict, judgment, award, settlement, or compromise secured by or on behalf of the injured patient related to the injuries treated by the health care professional. If the verdict, judgment, award, settlement, or compromise is to be paid over time by means of an annuity or otherwise, any lien under this chapter shall be satisfied by the party obligated to compensate the injured patient before the establishment of the annuity or other extended payment mechanism.
   2.
  a.  A settlement made by and between the patient and the persons, entities, or insurers allegedly liable for the injured patient’s damages shall not discharge the lien against any money due or owing by such person, entity, or insurer to the patient or relieve the person, entity, or insurer from liability by reason of such lien unless any of the following apply:
   b.  The settlement also provides for the payment and discharge of such lien.
   c.  A written release or waiver of any such claim of lien is signed by the health care professional and either of the following apply:
   (1)  The written release or waiver is filed in the court where an action has been commenced against the persons, entities, or insurers allegedly liable for the injured patient’s damages.
   (2)  The written release or waiver is delivered by certified mail or restricted certified mail, as defined in section 618.15, or in person to such persons, entities, or insurers allegedly liable for the injured patient’s damages, if no court action has been commenced against the persons, entities, or insurers allegedly liable for the injured patient’s damages.
   3.
  a.  After the filing and mailing of a health care professional’s lien notice, any person, entity, or insurer who makes any payment to an injured patient or to the injured patient’s attorneys, heirs, or legal representatives as compensation for the injury sustained from the accident or intentional act without paying the health care professional the amount of the health care professional’s lien recoverable pursuant to section 582A.3, or so much thereof as can be satisfied out of the money due under any final judgment or compromise or settlement agreement, shall, for a period of one year from the date of payment to such patient or the patient’s heirs, attorneys, or legal representatives, be liable to such health care professional for the amount of the health care professional’s outstanding lien. The health care professional may, within such one-year period, enforce the lien by filing an action at law against such person, entity, or insurer making any such payment.
   b.  In any action filed by a health care professional pursuant to paragraph“a” to enforce the lien, the health care professional shall be entitled to recover reasonable attorney fees and the costs of any such action.
   4.  In the case of multiple claims to payments filed under this chapter and chapter 582, priority shall be given to hospital liens filed pursuant to chapter 582.