PREFILED DEC 10 2021
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REFERENCE TITLE: health care liens; limitation |
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State of Arizona Senate Fifty-fifth Legislature Second Regular Session 2022
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SB 1021 |
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Introduced by Senator Ugenti-Rita
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AN ACT
amending section 33-931, Arizona Revised Statutes; amending title 33, chapter 7, article 3, Arizona Revised Statutes, by adding section 33-937; relating to health care provider liens.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 33-931, Arizona Revised Statutes, is amended to read:
33-931. Lien of health care provider on damages recovered by injured person receiving services; hospital priority; enforcement
A. Every individual, partnership, firm, association, corporation or institution or any governmental unit that maintains and operates a health care institution or provides health care services in this state and that has been duly licensed by this state, or any political subdivision or private entity with ambulances operated, licensed or registered pursuant to title 36, chapter 21.1, is entitled to a lien for the care and treatment or transportation of an injured person as prescribed by SUBSECTION E of this section. The lien shall be for the claimant's customary charges for care and treatment or transportation of an injured person. A lien pursuant to this section extends to all claims of liability or indemnity, except health insurance and medical payments coverage and underinsured motorist and uninsured motorist coverage as defined in section 20-259.01, for damages accruing to the person to whom the services are rendered, or to that person's legal representative, on account of the injuries that gave rise to the claims and that required the services.
B. If a county maintains, operates or provides health care services, it the county is entitled to an assignment by operation of law for the care and treatment or transportation of an injured person as prescribed by subsection E of this section. The assignment shall be for the claimant's customary charges for care and treatment or transportation of an injured person. An assignment pursuant to this section extends to any claims of liability or indemnity, except health insurance and medical payments coverage and underinsured motorist and uninsured motorist coverage as defined in section 20-259.01, for damages accruing to the person to whom the services are rendered, or to that person's legal representative, on account of injuries that gave rise to the claims and that required the services.
C. The lien entitlements authorized by subsection A of this section and the assignment authorized by subsection B of this section are applicable to all customary charges by hospitals or ambulances of political subdivisions, but are restricted to customary charges in excess of two hundred fifty dollars $250 by all other providers and privately owned ambulance companies excluding interest and service charges.
D. Liens perfected pursuant to this article by a hospital have priority for payment over all other liens authorized by this article.
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.
Sec. 2. Title 33, chapter 7, article 3, Arizona Revised Statutes, is amended by adding section 33-937, to read:
33-937. 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, 2022.