SB 5-1_ Filed 04/03/2013, 13:40


Text Box

Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

12

                                                        NO:
1

MR. SPEAKER:
    Your Committee on       Insurance     , to which was referred       Senate Bill 5     , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:

SOURCE: Page 1, line 1; (13)AM000506.1. -->     Page 1, delete lines 1 through 2, begin a new paragraph and insert:
SOURCE: IC 32-33-4-1; (13)AM000506.1. -->     "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 section 3(c) and 3(d) 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
            (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;
        if the person, firm, partnership, association, limited liability company, or corporation maintaining a hospital in Indiana or the hospital owned, maintained, or operated by the state or a political subdivision of the state seeks medical payments from the Medicare or Medicaid program;

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)AM000506.2. -->     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;
            if the person, firm, partnership, association, limited liability company, or corporation maintaining a hospital in Indiana or the hospital owned, maintained, or operated by the state or a political subdivision of the state seeks medical payments from the Medicare or Medicaid program;

        (4) is not assignable; and
        (5) must first be reduced by the amount of any medical insurance proceeds paid to the hospital on behalf 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) the patient's automobile or homeowner's insurance that provides for medical payments.

SOURCE: IC 32-33-4-3.5; (13)AM000506.3. -->     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) If a hospital lienholder settles or compromises a claim in an amount less than the amount of the hospital lienholder's lien and less than the amount that would be reimbursed by the federal Medicare program (42 U.S.C. 1395 et seq.) or the federal Medicaid program (42 U.S.C. 1396 et seq.), the hospital lienholder, notwithstanding sections 1(5) and 3(b)(E) of this chapter, may seek reimbursement from the Medicaid or Medicare program for the difference between the settlement or compromise the hospital lienholder received and the amount that would be reimbursed by the Medicaid or Medicare program.
    (e) If a hospital lienholder agrees to payment of its services or expenses (including charges for hospital care, treatment, and maintenance of a patient) under the terms of a contract, the

hospital lienholder is barred from seeking any amount above the amount specified in the contract from the other party to the contract.

SOURCE: IC 32-33-4-4; (13)AM000506.4. -->     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)AM000506.5. -->     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: Page 1, line 10; (13)AM000506.1. -->     Page 1, delete lines 10 through 17.
    Page 2, delete lines 1 through 9.
    Page 2, line 10, delete "2." and insert " 1.".
    Renumber all SECTIONS consecutively.
    (Reference is to SB 5 as printed February 13, 2013.)

and when so amended that said bill do pass.

__________________________________

Representative Lehman


AM000506/DI 97    2013