Arizona 2022 2022 Regular Session

Arizona Senate Bill SB1021 Comm Sub / Analysis

Filed 03/21/2022

                      	SB 1021 
Initials PRB 	Page 1 	Commerce 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-fifth Legislature 
Second Regular Session 
Senate: FIN DP 6-2-2-0 | 3
rd
 Read 19-9-2-0 
 
SB 1021: health care liens; limitation 
Sponsor: Senator Ugenti-Rita, LD 23 
Committee on Commerce 
Overview 
Prescribes health care provider lien and assignment restrictions and compromise requirements. 
History 
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). 
Provisions 
1. Specifies health care provider liens and county assignments are subject to prescribed 
restrictions. (Sec. 1) 
2. Prescribes the following restrictions to liens and assignments: 
a) exempts the first $20,000 of any third-party judgment, settlement or award from any 
authorized lien or assignment; 
b) stipulates the contract must expressly allow the claimant to assert an authorized lien or 
assignment 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 and 
invalidates the lien or assignment in the absence of that contract provision; 
c) specifies the lien amount exemption and contract provision requirement do not apply if: i) 
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; or ii) the insured 
person is not covered by any health insurance or benefit plan; 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note    	SB 1021 
Initials PRB 	Page 2 	Commerce 
d) permits a claimant to enforce an authorized lien or assignment for the amount of a patient's 
responsibility for outstanding copayments and deductibles that are due under the injured 
person's health insurance or benefit plan; and 
e) requires any valid and enforceable lien or assignment to be compromised in accordance 
with prescribed criteria. (Sec. 1) 
3. Requires health care providers to compromise any lien or assignment to provide a settlement 
of the claim that is fair and equitable. (Sec. 2) 
4. Prescribes factors that a health care provider must consider in determining the extent of the 
required compromise. (Sec. 2) 
5. Permits the injured person to file an action for a judicial determination of an appropriate 
compromise of the lien or assignment based on the prescribed factors if the parties cannot 
agree on a compromise. (Sec. 2) 
6. Prohibits a prevailing party in a lien or assignment judgment from recovering the statutorily 
authorized attorney fees. (Sec. 2)  
7. Asserts health care provider liens and county assignments are enforceable by a cause of 
action as prescribed by statute. (Sec. 1) 
8. Specifies a health care provider lien or county assignment does not extend to medical 
payments coverage. (Sec. 1) 
9. Applies the health care provider lien restrictions and compromise requirements to liens that 
are filed for services that are provided beginning January 1, 2023. (Sec. 3) 
10. Makes technical and clarifying changes. (Sec. 1)