Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1021
health care liens; limitation
Purpose
Prohibits certain entities that provide health care or ambulance services from recovering
an injured person's medical payment coverage when asserting a lien or assignment on the injured
person's claims settlement. Prescribes health care provider lien and assignment conditions and
compromise requirements. Subjects liens filed for services provided beginning January 1, 2023, to
certain conditions and compromise requirements.
Background
Any health care provider, health care institution or ambulance entity that provides care and
treatment or transportation services to an injured person may assert a lien on the injured person’s
claims settlement to recover costs associated with the services provided. A county that maintains,
operates or provides health care services may impose an assignment on an injured person's
settlement for costs associated with the care and treatment or transportation of the injured person.
The lien or assignment extends to all claims of liability or indemnity, except health insurance and
underinsured motorist and uninsured motorist coverage benefits (A.R.S. § 33-931).
In order to perfect a lien, a health care provider or health care institution must record a
verified written statement with the county recorder in the county where the health care provider or
health care institution is located within 30 days after an injured person receives any medical
services or is discharged. The statement must include: 1) the dates of services received by the
injured person; 2) the amount claimed due for services; 3) the name and address of the injured
person; and 4) the name and location of the health care provider or health care institution. Within
five days after recording the claim or lien, the health care provider or health care institution must
mail a copy to the injured person and either mail or provide notice to all persons, firms or
corporations and insurance carriers liable for damages, as applicable (A.R.S. § 33-932).
A release of claims on which a lien or assignment is given or any judgment on that claim
is not valid or effectual against the lien or assignment unless the lienholder or assignee joins in the
release or executes a release of the lien or assignment (A.R.S. § 33-934).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Prohibits a health care provider, a health care institution or an ambulance entity from
recovering an injured person’s medical payment coverage when asserting a lien on the injured
person's claims settlement. FACT SHEET
S.B. 1021
Page 2
2. Prohibits a county that maintains, operates or provides health care services from recovering an
injured person's medical payment coverage when asserting an assignment on the injured
person's claims settlement.
3. Exempts the first $20,000 of any third-party judgement, settlement or award from a health care
provider lien or assignment.
4. Requires a lien for a claimed amount due that is $20,000 or less to be promptly released on
written request.
5. Stipulates that, if services provided are covered by the injured person's health insurance or
similar medical benefit plan in which the health care provider has a contract, the contract must
expressly allow the claimant to assert a lien or assignment and the absence of the contract
provision deems any lien or assignment as invalid and unenforceable.
6. 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
similar medical benefit plan; or
b) the injured person is not covered by health insurance or a similar medical benefit plan.
7. Allows 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.
8. Requires a health care provider to compromise any valid and enforceable lien or assignment
to provide a settlement of the claim that is fair and equitable.
9. 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 sources 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.
10. Allows an injured person whose care, treatment or transportation is subject to a lien or
assignment to file an action for judicial determination of an appropriate compromise of the lien
or assignment, if the parties cannot agree on a compromise.
11. Prohibits a prevailing party in a health care provider lien or assignment judgement from
recovering the statutorily authorized attorney fees.
12. Applies the health care provider lien conditions and compromise requirements to liens filed
for services that are provided beginning January 1, 2023.
13. Makes technical and conforming changes.
14. Becomes effective on the general effective date.
Prepared by Senate Research
January 14, 2022
MG/slp