Alabama Senate Bill SB210

Alabama 2025 Regular Session

• Introduced: 3/4/25
• Refer: 3/4/25
• Report Pass: 4/9/25

Caption

Hospital liens, to limit

Impact

This bill seeks to regulate the amount hospitals can recover by filing liens, enabling them to adjust their claims based on the time taken to receive payment. By doing this, SB210 introduces a measure of standardized practices in how hospitals recoup costs from insurance claims tied to third-party liabilities. There's a cap on recovery amounts from third-party insurers, preventing hospitals from claiming excessive amounts when the total exceeds policy limits. This could lead to fairer practices in hospital billing and potentially lower medical costs for patients.

Summary

SB210 aims to amend existing legislation regarding hospital liens as outlined in Section 35-11-371 of the Code of Alabama 1975. The bill introduces provisions that allow hospitals to choose between filing a lien for treatment of injured patients or billing government healthcare programs like Medicare or Medicaid directly. Should the hospital opt for filing a lien, the amount would be linked to the expected governmental reimbursement, with an added percentage for administrative costs. In cases where patients lack healthcare coverage, the lien amount is capped at what Medicare would reimburse, supplemented by a defined percentage.

Contention

While the bill makes strides toward clarity surrounding hospital liens, it may generate contention regarding the potential impact on patient rights and medical billing practices. Critics might express concern that the cap on lien amounts could limit hospitals' ability to recover full costs incurred during patient treatment, especially in complex cases where patients have insufficient coverage. Proponents argue that these measures ensure that hospitals remain within equitable billing practices while streamlining processes for reimbursement, especially in cases involving government healthcare programs. As the bill progresses, the balance between hospital recovery and patient financial protection will likely be a focal point for discussion.