SB 1021
Initials PRB Page 1 House Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
Senate: FIN DP 6-2-2-0 | 3
rd
Read 19-9-2-0
House: COM DPA 8-2-0-0
SB 1021: health care liens; limitation
Sponsor: Senator Ugenti-Rita, LD 23
House Engrossed
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 one-third of any third-party judgment, settlement or award from any authorized
lien or assignment;
b) stipulates the contract must expressly allow the health care provider to assert an
authorized lien or assignment if the injured person is covered under a health insurance or
medical benefit plan and the provider has a valid and binding contract with that insurer or
plan as an in-network provider, and without that contract provision the lien or assignment
is invalid and unenforceable;
c) specifies the lien amount exemption and contract provision requirement do not apply if
specified exceptions are met;
d) permits a health care provider to enforce an authorized lien or assignment for all amounts
the patient is responsibility including outstanding coinsurance, copayments and
deductibles; and
e) requires any valid and enforceable lien or assignment to be compromised in accordance
with prescribed criteria and be subordinate to any lien with higher priority (Sec. 1)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1021
Initials PRB Page 2 House Engrossed
3. Specifies the lien or assignment restrictions do not affect the rights of a health care provider
to enforce a consensual agreement against the patient who has signed the agreement. (Sec.
1)
4. Requires all interested parties to compromise any lien or assignment and the amounts owed
in accordance with any such lien or assignment to provide a settlement of the claim that is fair
and equitable. (Sec. 2)
5. Prescribes factors that a health care provider must consider in determining the extent of the
required compromise. (Sec. 2)
6. Directs the patient, on request of the health care provider to provide a proposed distribution
list of the settlement monies including the amount the patient would receive if the liens are
compromised. (Sec. 2)
7. Stipulates an action may be filed for a judicial determination of an appropriate compromise if
the interested parties cannot agree on a compromise. (Sec. 2)
8. Outlines the individuals who may file for a judicial determination. (Sec. 2)
9. Prevents the prevailing party from recovering attorney fees in any action. (Sec. 2)
10. Asserts health care provider liens and county assignments are enforceable by a cause of
action as prescribed by statute. (Sec. 1)
11. Specifies a health care provider lien or county assignment does not extend to medical
payments coverage. (Sec. 1)
12. 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)
13. Makes technical and clarifying changes. (Sec. 1)