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Bill Detail: HB21-1300

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Title Health-care Provider Liens For Injured Persons
Status Governor Signed (07/07/2021)
Bill Subjects
  • Health Care & Health Insurance
House Sponsors P. Neville (R)
M. Weissman (D)
Senate Sponsors R. Zenzinger (D)
J. Smallwood (R)
House Committee Judiciary
Senate Committee State, Veterans and Military Affairs
Date Introduced 04/30/2021
Summary

The bill establishes requirements for the creation and assignment
of a health-care provider lien for a person injured in an accident. A
health-care provider lien is a lien related to charges for health 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 health-care provider or the health-care 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. In
addition, the provider or assignee must provide additional disclosures
about the lien, including how the health-care provider's assignee is
compensated and of any common ownership interests among the lien
holder and the injured person's health-care providers or legal counsel. The
injured person must also be advised that, except in the case of fraud or
misrepresentation:
  • If the injured person does not receive a judgment,
settlement, or payment on the injured person's claim, the
injured person is not liable for any amount of the lien;
  • If the injured person receives a net judgment, settlement, or
payment that is less than the amount of the lien, the injured
person is not liable for any amount over the amount of the
net judgment, settlement, or payment; and
  • The lien holder cannot assign the lien to a collection
agency.
The bill requires that a health-care provider lien cannot include
additional finance charges or interest and must be limited to the total of
the usual and customary charges billed by health-care providers. In the
absence of fraud or misrepresentation:
  • If the injured person does not receive a judgment,
settlement, or payment on the injured person's claim, the
injured person is not liable for any amount of the lien;
  • If the injured person receives a net judgment, settlement, or
payment that is less than the amount of the lien, the injured
person is not liable for any amount over the amount of the
net judgment, settlement, or payment; and
  • The lien holder cannot assign the lien to a collection
agency.
Except in an action under the Uniform Consumer Credit Code,
when a lien is assigned, the amount paid for the assignment, the fact of
the assignment, and the terms of the assignment are not admissible as
evidence in the underlying personal injury action.
The holder of a health-care provider lien may file notice of the lien
with the office of the secretary of state. If more than one health-care
provider lien has been asserted against an injured person's net judgment,
settlement, or payment for the same accident or incident, a lien for which
notice has been filed has priority over a lien for which notice has not been
filed. If notices are filed for more than one health-care provider lien for
the same accident or incident, priority is determined by the date on which
the notice was filed, with the lien with the earliest date of filing having
first priority.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (05/23/2021) (most recent)  
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