Bill Text: IN SB0005 | 2013 | Regular Session | Enrolled

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Bill Title: Hospital liens and ambulance liens.

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Passed) 2013-05-13 - Public Law 173 [SB0005 Detail]

Download: Indiana-2013-SB0005-Enrolled.html

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First Regular Session 118th General Assembly (2013)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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    SENATE ENROLLED ACT No. 5

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     AN ACT to amend the Indiana Code concerning property.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 32-33-4-1; (13)SE0005.1.1. -->

    SECTION 1. IC 32-33-4-1, AS AMENDED BY P.L.160-2012, SECTION 59, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 1. Subject to sections 3(c), 3(d), and 3.5 of this chapter, a person, a firm, a partnership, an association, a limited liability company, or a corporation maintaining a hospital in Indiana or a hospital owned, maintained, or operated by the state or a political subdivision of the state is entitled to hold a lien for the reasonable value of its services or expenses (including any amount designated as a copayment or deductible) on any judgment for personal injuries rendered in favor of any person, except:
        (1) a person covered by the provisions of IC 22-3-2 through IC 22-3-6; IC 22-3, the state worker's compensation laws;
        (2) a person covered by the provisions of 5 U.S.C. 8101 et seq., the federal worker's compensation laws;
        (3) a person covered by the provisions of 45 U.S.C. 51 et seq., the federal liability act; or
        (4) an eligible person (as defined in IC 34-13-8-1) with respect to a distribution paid from the supplemental state fair relief fund for an occurrence (as defined in IC 34-13-8-2); and
        (5) a person:
            (A) covered by the provisions of 42 U.S.C. 1395 et seq., the federal Medicare program; or

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            (B) covered by the provisions of 42 U.S.C. 1396 et seq., the federal Medicaid program, administered by the state under IC 12-15;
who is admitted to the hospital and receives treatment, care, and maintenance on account of personal injuries received as a result of the negligence of any person or corporation. In order to claim the lien, the hospital must at the time or after the satisfy the conditions for perfecting the lien as set forth in section 4 of this chapter and, not later than the date on which the judgment is rendered, enter, in writing, upon the judgment docket where the judgment is recorded, the hospital's intention to hold a lien upon the judgment, together with the amount claimed.

SOURCE: IC 32-33-4-3; (13)SE0005.1.2. -->     SECTION 2. IC 32-33-4-3, AS AMENDED BY P.L.160-2012, SECTION 60, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. (a) A person, a firm, a partnership, an association, a limited liability company, or a corporation maintaining a hospital in Indiana or a hospital owned, maintained, or operated by the state or a political subdivision has a lien for all reasonable and necessary charges for hospital care, treatment, and maintenance of a patient (including emergency ambulance services provided by the hospital and any amount designated as a copayment or deductible) upon any cause of action, suit, or claim accruing to the patient, or in the case of the patient's death, the patient's legal representative, because of the illness or injuries that:
        (1) gave rise to the cause of action, suit, or claim; and
        (2) necessitated the hospital care, treatment, and maintenance.
    (b) The lien provided for in subsection (a):
        (1) except as provided in subsection (c), applies to any amount obtained or recovered by the patient by settlement or compromise rendered or entered into by the patient or by the patient's legal representative;
        (2) is subject and subordinate to any attorney's lien upon the claim or cause of action;
        (3) is not applicable to accidents or injuries within the purview of: a person covered by:
            (A) the provisions of IC 22-3, the state worker's compensation laws;
            (B) the provisions of 5 U.S.C. 8101 et seq., the federal worker's compensation laws;
            (C) 45 U.S.C. 51 et seq., or the federal liability act;
            (D) IC 34-13-8 concerning a distribution paid from the supplemental state fair relief fund to an eligible person (as

defined in IC 34-13-8-1) for an occurrence (as defined in IC 34-13-8-2); or
            (E) the provisions of:
                (i) 42 U.S.C. 1395 et seq., the federal Medicare program; or
                (ii) 42 U.S.C. 1396 et seq., the federal Medicaid program, administered by the state under IC 12-15;
        (4) is not assignable; and
        (5) must:
             (A) first be reduced by the amount of any benefits to which the patient is entitled under the terms of any contract, health plan, or medical insurance; proceeds paid to the hospital on behalf and
            (B) reflect credits for all payments, contractual adjustments, write-offs, and any other benefit in favor of the patient;
        after the hospital has made all reasonable efforts to pursue the insurance claims in cooperation with the patient.
    (c) If a settlement or compromise that is subject to subsection (b)(1) is for an amount that would permit the patient to receive less than twenty percent (20%) of the full amount of the settlement or compromise if all the liens created under this chapter were paid in full, the liens must be reduced on a pro rata basis to the extent that will permit the patient to receive twenty percent (20%) of the full amount.
     (d) A lien provided for in this chapter does not apply to a judgment, cause of action, suit, or claim accruing to the patient under:
        (1) a policy of disability insurance; or
        (2) automobile or homeowner's insurance that provides for medical payments.

SOURCE: IC 32-33-4-3.5; (13)SE0005.1.3. -->     SECTION 3. IC 32-33-4-3.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3.5. (a) This section applies to any person who holds a lien under this chapter.
    (b) As used in this section, "hospital lienholder" means:
        (1) a person, firm, partnership, association, limited liability company, or corporation maintaining a hospital in Indiana; or
        (2) a hospital owned, maintained, or operated by the state or a political subdivision;
that has a lien under this chapter.
    (c) If a hospital lienholder settles or compromises a claim in an

amount less than the amount of its lien, the hospital lienholder is barred from seeking any additional reimbursement from the patient or the patient's representative.
    (d) A hospital lienholder is barred from seeking from the patient or the patient's representative payment for any amount of the hospital's charges that exceed the patient's financial obligation to the hospital under the terms of any public or private benefits to which the patient is entitled, including the terms of any health plan contract and medical insurance. The lien must reflect credits for all payments, contractual adjustments, write-offs, and any other benefit in favor of the patient.
    (e) A hospital lienholder is barred from enforcing the collection of charges covered by this chapter until the cause of action, suit, or claim accruing to the patient has been resolved by compromise, settlement, or judgment.

SOURCE: IC 32-33-4-4; (13)SE0005.1.4. -->     SECTION 4. IC 32-33-4-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) To perfect the lien provided for in section 3 of this chapter, the hospital must file for record in the office of the recorder of the county in which the hospital is located, within one hundred eighty (180) ninety (90) days after the person is discharged or not later than the date of the final settlement, compromise, or resolution of the cause of action, suit, or claim accruing to the patient, whichever occurs first, a verified statement in writing stating:
        (1) the name and address of the patient as it appears on the records of the hospital;
        (2) the name and address of the operator of the hospital;
        (3) the dates of the patient's admission to and discharge from the hospital;
        (4) the amount claimed to be due for the hospital care; and
        (5) to the best of the hospital's knowledge, the names and addresses of anyone claimed by the patient or the patient's legal representative to be liable for damages arising from the patient's illness or injury.
    (b) Within ten (10) days after filing the statement, the hospital shall send a copy by registered mail, postage prepaid:
        (1) to each person claimed to be liable because of the illness or injury at the address given in the statement;
        (2) to the attorney representing the patient if the name of the attorney is known or with reasonable diligence could be discovered by the hospital; and
        (3) to the department of insurance as notice to insurance

companies doing business in Indiana.
    (c) The filing of a claim under subsections (a) and (b) is notice to any person, firm, limited liability company, or corporation that may be liable because of the illness or injury if the person, firm, limited liability company, or corporation:
        (1) receives notice under subsection (b);
        (2) resides or has offices in a county where the lien was perfected or in a county where the lien was filed in the recorder's office as notice under this subsection; or
        (3) is an insurance company authorized to do business in Indiana under IC 27-1-3-20.
    (d) The filing of a verified statement under subsection (a) constitutes filing of a lien under section 1 of this chapter if the statement is filed before the issuance of the judgment.
     (d) A lien:
        (1) is effective under this chapter on the date a hospital complies with subsections (a) and (b); and
        (2) may not be made retroactive to any prior date.
    (e) A person desiring to contest a lien or the reasonableness of the charges claimed by the hospital may do so by filing a motion to quash or reduce the claim in the circuit court in which the lien was perfected, making all other parties of interest respondents.

SOURCE: IC 32-33-4-7; (13)SE0005.1.5. -->     SECTION 5. IC 32-33-4-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) To release a lien perfected under section 4 of this chapter, the operator of the hospital to whom that claims the lien has been paid must file with each recorder in whose office the notice of the hospital lien was filed an executed certificate:
        (1) stating that the claim filed by the hospital for treatment, care, and maintenance has been paid or discharged; and
        (2) authorizing the recorder to release the lien.
The hospital shall bear the expense of obtaining a release.
    (b) Upon receipt of the certificate, the recorder shall enter in the margin of the record of the lien and the entry book a memorandum of the filing and the date the certificate was filed. This entry constitutes a release of lien for which the recorder shall receive the fee prescribed in IC 36-2-7-10.
    (c) If the amount of a lien has been satisfied or paid and subsequently a demand for a release of the lien is made, the lienholder is liable to the person, firm, limited liability company, or corporation against whose interest the lien has been filed for ten twenty-five dollars ($10) ($25) for each day that the lien remains in effect after the

fifteenth day after the demand for a release of the lien was made.
    (d) The operator of the releasing hospital shall mail a copy of the release of lien certificate required under subsection (a) to the department of insurance within ten (10) days after the certificate was filed with the recorder.

SOURCE: IC 32-33-5; (13)SE0005.1.6. -->     SECTION 6. IC 32-33-5 IS REPEALED [EFFECTIVE JULY 1, 2013]. (Ambulance Liens).

SOURCE: IC 32-33-21; (13)SE0005.1.7. -->     SECTION 7. IC 32-33-21 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]:
     Chapter 21. Repeal of Laws Concerning Liens on Personal Property
    Sec. 1. (a) Notwithstanding the repeal of IC 32-33-5 concerning ambulance liens on July 1, 2013, if a provider of emergency ambulance services perfects a lien under IC 32-33-5-4 before July 1, 2013:
        (1) the lien remains valid; and
        (2) the provisions of IC 32-33-5 in effect on June 30, 2013, continue to apply to the lien;
until the lien is released under IC 32-33-5 as in effect on June 30, 2013.
    (b) The repeal of IC 32-33-5 may not be construed to affect or abridge a right of a provider of emergency ambulance services:
        (1) to collect amounts claimed to be due the provider for emergency ambulance services; and
        (2) that is conferred under any other law or contractual right.
     (c) The repeal of IC 32-33-5 may not be construed to affect a patient's financial obligation under any other law or contract to pay the provider of emergency ambulance services the reasonable value of the services provided to the patient.

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SEA 5 _ Concur

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