Alabama 2025 Regular Session

Alabama Senate Bill SB210 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB210INTRODUCED
2	2	Page 0
3	3	SB210
4	4	RBGXFMY-1
5	5	By Senator Barfoot
6	6	RFD: Judiciary
7	7	First Read: 04-Mar-25
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12	12	5 RBGXFMY-1 02/19/2025 JC (L)lg 2025-813
13	13	Page 1
14	14	First Read: 04-Mar-25
15	15	SYNOPSIS:
16	16	Existing law provides that a hospital may
17	17	recover its charges for treatment of a patient injured
18	18	in an accident by filing a lien on any money the
19	19	patient receives by settlement with, or judgment
20	20	against, the person responsible for the injuries.
21	21	If an injured patient is covered by a government
22	22	program such as Medicare, this bill would give
23	23	hospitals the choice of either filing a claim with the
24	24	program or filing a hospital lien. If the hospital
25	25	files a lien, the amount of the lien would be tied to
26	26	the prospective reimbursement amount of the government
27	27	program, plus an additional percentage.
28	28	In the case of a patient who has no health care
29	29	coverage, the hospital's lien amount would be capped at
30	30	the prospective amount that would be reimbursed by
31	31	Medicare, plus an additional percentage.
32	32	A hospital that files a lien may also choose to
33	33	adjust the amount of its claim, based upon the length
34	34	of time it takes to receive payment.
35	35	This bill would cap the amount a hospital may
36	36	recover for treatment from the insurance of a third
37	37	party that is liable for the injury when the amount
38	38	claimed exceeds the policy limits.
39	39	This bill would permit a patient to obtain a
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67	67	28 SB210 INTRODUCED
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69	69	This bill would permit a patient to obtain a
70	70	copy of his or her medical records and an itemized
71	71	statement of the charges that support the amount
72	72	claimed by the hospital in a lien.
73	73	This bill would also make nonsubstantive,
74	74	technical revisions to update the existing code
75	75	language to current style.
76	76	A BILL
77	77	TO BE ENTITLED
78	78	AN ACT
79	79	Relating to hospital liens; to amend Section 35-11-371,
80	80	Code of Alabama 1975, to further provide for payment for
81	81	treatment of injured patients by requiring hospitals in
82	82	certain circumstances to either bill a government health
83	83	insurance program or file a lien; to regulate hospital lien
84	84	amounts and hospital recovery from third-party insurers; to
85	85	require a hospital to substantiate the amount of a lien upon
86	86	request by a patient; and to make nonsubstantive, technical
87	87	revisions to update the existing code language to current
88	88	style.
89	89	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
90	90	Section 1. Section 35-11-371, Code of Alabama 1975, is
91	91	amended to read as follows:
92	92	"§35-11-371
93	93	(a) For the purposes of this section, the following
94	94	terms shall have the following meanings:
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124	124	terms shall have the following meanings:
125	125	(1) GOVERNMENTAL PAYOR. Includes Medicare, Medicaid,
126	126	the Children's Health Insurance Program (ALL kids), TRICARE,
127	127	Veterans Health Administration, and the Indian Health Service.
128	128	(1)(2) HEALTH CARE PAYOR. A health care insurer, health
129	129	maintenance organization, or health care service plan
130	130	organized under Article 6, Chapter 20, Title 10A, authorized
131	131	to provide health care coverage in the state.
132	132	(2)(3) SATISFY THE CLAIM. Receipt by the hospital of
133	133	either of the following:
134	134	a. Full payment for services as billed , subject to
135	135	payment for services as regulated under subdivisions (b)(2)
136	136	through (3).
137	137	b. If the hospital has a contract with the injured
138	138	person'spatient's health care payor, payment together with all
139	139	credits, discounts, and contractual adjustments that the
140	140	patient's bill would be entitled under the contract, including
141	141	recoupments, between the hospital and the patient's health
142	142	care payor which extinguish the patient's obligation for the
143	143	services rendered.
144	144	(b) Unless contrary to any law or governmental rule or
145	145	regulation of the United States or this state, no hospital
146	146	shall perfect a lien as to any injured personpatient who was
147	147	covered by a health care payor's policy, until the hospital
148	148	submits to the health care payor an accurate and properly
149	149	coded claim, or if a contract exists between the hospital and
150	150	the health care payor, in the form required pursuant to the
151	151	contract, and if there is a failure to satisfy the claim .,
152	152	Perfection of a lien shall be as follows may be perfected in
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182	182	Perfection of a lien shall be as follows may be perfected in
183	183	the manner prescribed for the following situations :
184	184	(1) A hospital may perfect its lien as to an injured
185	185	personpatient who was covered by a health care payor's policy
186	186	that provides primary coverage for the care, if the hospital
187	187	takes the steps described in subsection (c), within 20 days
188	188	after its receipt of notice of the health care payor's denial
189	189	of an accurate and properly coded claim. Failure to satisfy an
190	190	accurate and properly coded claim within 45 days of submission
191	191	or the subsequent recoupment by the health care payor of
192	192	amounts previously paid, which results in a failure to satisfy
193	193	the claim, shall be deemed a denial of the claim.
194	194	(2) A hospital may perfect its lien as to an injured
195	195	person who: (i) was not known to the hospital to be covered by
196	196	a health care payor, (ii) was covered by a governmental payor
197	197	including Medicare or Medicaid, or(iii) was covered by a
198	198	policy not described in subdivision (1), or (iv) has no
199	199	coverage from any source, if it takes the steps described in
200	200	subsection (c) within 20 days after discharge.
201	201	a. If an injured patient's only health care coverage is
202	202	a governmental payor, the hospital may: (i) perfect its lien
203	203	pursuant to this paragraph, or (ii) bill the government payor
204	204	for satisfaction of its charges and any claim for services
205	205	billed. If the hospital chooses not to bill the governmental
206	206	payor, the hospital's lien shall be limited to the amount of
207	207	the governmental payor's prospective reimbursement to the
208	208	hospital for treatment of the injury, plus 10 percent of that
209	209	amount. In the alternative, the hospital may elect to satisfy
210	210	its claim by receiving one of the following applicable
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240	240	its claim by receiving one of the following applicable
241	241	amounts:
242	242	1. Twenty percent of the amount of the lien if the
243	243	hospital receives payment within 180 days of filing the lien.
244	244	2. Twenty-five percent of the amount of the lien if the
245	245	hospital receives payment within 240 days of filing the lien.
246	246	3. Thirty percent of the hospital lien if the hospital
247	247	receives payment more than 240 days after filing the lien.
248	248	b. If an injured patient has no coverage from any
249	249	source, the hospital's lien shall be limited to what would be
250	250	the amount of the prospective Medicare reimbursement to the
251	251	hospital for treatment of the injury, plus 10 percent of that
252	252	amount. In the alternative, the hospital may elect to satisfy
253	253	its claim by receiving one of the applicable payment amounts
254	254	as provided in subparagraphs a.1. through 3.
255	255	(3) If the amount of the hospital lien exceeds the
256	256	policy limit of a third party's insurance, the maximum amount
257	257	of the lien shall be governed by the limits in subparagraphs
258	258	(2)a.1. through 3., provided that in no event shall the
259	259	hospital's recovery exceed 30 percent of the total policy
260	260	limit of a third party's insurance when there is any other
261	261	outstanding lien asserted by a health care provider or a
262	262	governmental payor.
263	263	(3)(4) Where the hospital does not receive evidence of
264	264	the injured person'spatient's health care payor until after
265	265	the lien provided for by this section has been perfected, the
266	266	hospital shall bill the health care payor forthwith but may
267	267	retain its lien until satisfaction of the claim. If the claim
268	268	is satisfied, the hospital shall release the lien within 10
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298	298	is satisfied, the hospital shall release the lien within 10
299	299	days.
300	300	(c) In order to perfect a lien under this division, the
301	301	operator of the hospital shall file with the probate court of
302	302	the county in which the hospital is located a verified
303	303	statement setting forth the name and address of the patient ,
304	304	as it appears on the records of the hospital, the name and
305	305	location of the hospital and the name and address of the
306	306	operator thereof, the dates of admission and discharge of the
307	307	patient therefrom, the amount claimed to be due for the
308	308	hospital care, which shall give full credit for any health
309	309	care payor payments made, including agreed contractual
310	310	adjustments, and to the best of the claimant's knowledge, the
311	311	names and addresses of all persons , firms, or corporations
312	312	claimed by the injured personpatient, or the legal
313	313	representative of the personpatient, to be liable for damages
314	314	arising from the injuriesinjury. The claimant shall also
315	315	within one day after the filing of the claim or lien, mail a
316	316	copy thereof by registered or certified mail, postage prepaid,
317	317	for each person, firm, or corporation so claimed to be liable
318	318	on account of the injuries, at the addresses so given in the
319	319	statement, and to the patient, his or her guardian, or his or
320	320	her personal representative at the address given at the time
321	321	of admission.
322	322	(d) The filing of a claim or lien shall be notice
323	323	thereof to all persons, firms, or corporations claimed to be
324	324	liable for damages, whether or not they are named in the claim
325	325	or lien. Nothing shall be deemed to preclude the hospital from
326	326	perfecting its lien outside of the time limits stated in this
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356	356	perfecting its lien outside of the time limits stated in this
357	357	section through providing actual notice to persons , firms, or
358	358	corporations.
359	359	(e) The judge of probate shall endorse thereonon the
360	360	lien the date and hour of filing, and at the expense of the
361	361	county shall provide a hospital lien book with proper index in
362	362	which he or she shall enter the date and hour of the filing,
363	363	the names and addresses of the hospital, the operators thereof
364	364	and of the patient, the amount claimed , and the names and
365	365	addresses of those claimed to be liable for damages. The
366	366	information shall be recorded in the name of the patient. The
367	367	judge of probate shall be paid one dollar ($1) as his or her
368	368	filing fee for the filing.
369	369	(f) No more than 30 days after receipt of a written
370	370	request by a patient or the patient's representative, a
371	371	hospital shall provide a copy of the patient's medical record
372	372	and a statement itemizing each service along with each charge
373	373	that comprises the amount claimed on the lien ."
374	374	Section 2. This act shall become effective on October
375	375	1, 2025.
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