Bill
Number: S.B. 1522
Ugenti-Rita
Floor Amendment
Reference
to: printed bill
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
1. Removes the prohibition
on a health care provider who provides an injured person with services covered
by health insurance from asserting a lien, unless certain conditions are met.
2. Exempts the first
$20,000 of any third-party judgement, settlement or award from a health care
provider lien or assignment.
3. Requires any lien for a
claimed amount due that is $20,000 or less to be promptly released on written
request.
4. Stipulates that a
contract between a health insurance or medical benefit plan and a health care
provider must expressly allow a claimant to assert a lien or assignment, if the
services provided are covered services, and the absence of the contract
provision deems any lien or assignment invalid and unenforceable.
5. Entitles a claimant to
enforce a lien or assignment if:
a) services provided to an
injured person are not covered by the person's health insurance or medical
benefit plan; or
b) the injured person is
not covered by health insurance or a medical benefit plan.
6. Authorizes a claimant
to enforce a lien or assignment for the amount of an injured person's
responsibility for outstanding copayments and deductibles due under the person's
health insurance or medical benefit plan.
7. Requires a health care
provider to compromise any valid and enforceable lien or assignment pursuant to
statutory requirements.
8. Requires a health care provider,
when determining the extent of the compromise, to consider the following
factors:
a) the nature and extent
of the patient's injury or illness;
b) the sufficiency of
insurance or other source of indemnity available to the patient; and
c) any other factor
relevant to a fair and equitable settlement under the circumstances of a
particular case.
9. Allows, if the parties
cannot agree on a compromise of a lien or assignment, an injured person subject
to the lien or assignment to file an action for judicial determination of an
appropriate compromise of the lien or assignment.
10. Prohibits a prevailing
party in a judgement from recovering the statutorily authorized attorney fees.
11. Applies the health care
provider lien conditions and compromise requirements to liens filed for
services that are provided from and after December 31, 2020.
Page 1, line
6, after "priority" insert "; enforcement"
Line 13,
after "person" insert "as prescribed by
SUBSECTION E of this section"
Line 17, after
"underinsured" insert "motorist"
Line 24,
after "person" insert "as prescribed by
subsection E of this section"
Line 28,
after "underinsured" insert "motorist"
Strike page
2, insert:
"e. The liens and assignments authorized by this section are
enforceable by a cause of action prescribed by section 33-934 and are subject
to the following:
1. The
first $20,000 of any third-party judgment, settlement or award is exempt from
any lien or assignment authorized by this section. Any lien that is authorized
under this section for a claimed amount due that is equal to or less than
$20,000 must be promptly released on written request.
2. If
the services provided are covered by the injured person's health insurance or
similar medical benefit plan with which the health care provider has a
contract, the contract must expressly allow the claimant to assert a lien or
assignment that is authorized by this section. In the absence of that contract
provision, the lien or assignment is invalid and may not be enforced by a cause
of action prescribed by section 33-934.
3. Notwithstanding
PARAGRAPHs 1 and 2 of this subsection, if the services provided are not covered
by the injured person's health insurance or similar medical benefit plan in
which the health care provider has a contract with the insurer or plan, or If
the injured person is not covered by any health insurance or any similar
medical benefit plan, a claimant is entitled to enforce a lien or assignment
that is authorized by this section by a cause of action prescribed by section
33-934.
4. Notwithstanding
paragraphs 1, 2, and 3 of this subsection, a claimant may enforce a lien or
assignment authorized by this section by a cause of action prescribed by
section 33-934 for the amount of a patient's responsibility for outstanding
copayments and deductibles that are due under the injured person's health
insurance or similar medical benefit plan.
5. Any
valid and enforceable lien or assignment authorized by this section shall be
compromised pursuant to the criteria prescribed by section 33-937.END_STATUTE
Sec. 2. Title
33, chapter 7, article 3, Arizona Revised Statutes, is amended by adding section
33-937, to read:
START_STATUTE33-937. Limitation
of lien or assignment; compromise; cause of action; attorney fees
A. A
HEALTH CARE PROVIDER SHALL COMPROMISE any LIEN or assignment granted pursuant
to SECTION 33-931 TO PROVIDE A SETTLEMENT OF THE CLAIM THAT IS FAIR AND
EQUITABLE.
B. IN
DETERMINING THE EXTENT OF THE COMPROMISE REQUIRED BY SUBSECTION A OF THIS
SECTION, THE HEALTH CARE PROVIDER SHALL CONSIDER THE FOLLOWING FACTORS:
1. THE
NATURE AND EXTENT OF THE PATIENT'S INJURY OR ILLNESS.
2. THE
SUFFICIENCY OF INSURANCE OR OTHER SOURCES OF INDEMNITY AVAILABLE TO THE
PATIENT.
3. ANY
OTHER FACTOR RELEVANT TO A FAIR AND EQUITABLE SETTLEMENT UNDER THE
CIRCUMSTANCES OF that PARTICULAR CASE.
C. If
THE PARTIES CANNOT AGREE ON A COMPROMISE of a lien or assignment as prescribed
by this section, AN INJURED PERSON WHOSE CARE, TREATMENT OR TRANSPORTATION IS
SUBJECT TO A LIEN or assignment PURSUANT TO SECTION 33-931 MAY file AN ACTION
FOR A JUDICIAL DETERMINATION OF AN APPROPRIATE COMPROMISE of the lien or
assignment based on the factors prescribed by this section. IN ANY ACTION
BROUGHT PURSUANT TO THIS SECTION, THE PREVAILING PARTY may not RECOVER ATTORNEY
FEES AUTHORIZED BY SECTION 33-934.
Sec. 3. Applicability
Section
33-931, Arizona Revised Statutes, as amended by this act, and section 33-937,
Arizona Revised Statutes, as added by this act, apply to liens that are filed
for services that are provided from and after December 31, 2020."END_STATUTE
Amend title to conform