Service Provider Lien Restrictions
The primary impact of HB 495 is expected to redefine the balance of financial responsibility between service providers and patients following personal injury claims. The bill stipulates that any service provider asserting a lien will also share in attorney fees and costs associated with securing judgments, settlements, or compromises. This could potentially lessen the financial burden on patients who receive emergency care and are subsequently awarded damages, as it promotes a more equitable sharing of legal costs involved in settling claims.
House Bill 495, introduced by Janelle Anyanonu, aims to impose restrictions on liens that service providers, such as hospitals, can enforce on personal injury damages awarded to patients. The bill proposes amendments to several sections of the New Mexico Statutes Annotated (NMSA) 1978, specifically in Chapter 48, Article 8, which deals with the creation and enforcement of these liens. The bill outlines the requirements for service providers to file liens, including the need to file written notices with county clerks and to inform liable parties and their insurance carriers before compensation payments are made.
Notable points of contention surrounding this bill stem from concerns among service providers about the financial implications of shared attorney fees and costs. Some proponents argue that these changes are necessary to protect patients from excessive liens that may hinder their ability to secure fair settlements, while opponents worry that the restrictions might undermine the ability of service providers to recoup costs for the care provided. Furthermore, the bill asserts that liens are limited to ensuring that service providers' financial interests are legally recognized without participating in the negotiation of the settlement amounts, which some may view as a limitation of their rights.
Should HB 495 pass, its provisions will apply to lien enforcement actions filed on or after July 1, 2025, signifying a strategic timeline for service providers to adapt to the impending legal changes.