HB3206 97TH GENERAL ASSEMBLY

LRB097 08386 AJO 48513 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3206

Introduced 2/24/2011, by Rep. André M. Thapedi

SYNOPSIS AS INTRODUCED:

770 ILCS 23/10
770 ILCS 23/30
770 ILCS 23/35
770 ILCS 23/45

Amends the Health Care Services Lien Act. Provides that the total of all liens under the Act, including insurer reimbursement claims, (instead of all liens under the Act) shall not exceed 40% of a verdict, judgment, or settlement. Provides that a petition by an injured person or a health care provider to adjudicate the rights including liens of all interested parties may be served on interested parties by personal service, substitute service, or registered or certified mail. Provides that the Act applies to all insurers and their reimbursement claims and rights. Provides that if a patient provides his or her health insurance information to a health care professional or health care provider, the professional or provider is required to submit health care charges to the identified insurer and that the failure to do so voids the professional's or provider's lien and bars any collection action directly against the injured person. Limits the professional's or provider's lien to 66% of the charges that would have been submitted had the charge been presented to the insurer. Makes related changes.

A BILL FOR

AN ACT concerning civil law.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Health Care Services Lien Act is amended by changing Sections 10, 30, 35, and 45 as follows:

(770 ILCS 23/10)

Sec. 10. Lien created; limitation.

(a) Every health care professional and health care provider that renders any service in the treatment, care, or maintenance of an injured person, except services rendered under the provisions of the Workers' Compensation Act or the Workers' Occupational Diseases Act, shall have a lien upon all claims and causes of action of the injured person for the amount of the health care professional's or health care provider's reasonable charges up to the date of payment of damages to the injured person. The total amount of all liens under this Act, including insurer reimbursement claims, however, shall not exceed 40% of the verdict, judgment, award, settlement, or compromise secured by or on behalf of the injured person on his or her claim or right of action.

(b) The lien shall include a written notice containing the name and address of the injured person, the date of the injury, the name and address of the health care professional or health care provider, and the name of the party alleged to be liable to make compensation to the injured person for the injuries received. The lien notice shall be served on both the injured person and the party against whom the claim or right of action exists. Notwithstanding any other provision of this Act, payment in good faith to any person other than the healthcare professional or healthcare provider claiming or asserting such lien prior to the service of such notice of lien shall, to the extent of the payment so made, bar or prevent the creation of an enforceable lien. Service shall be made by registered or certified mail or in person.

(c) All health care professionals and health care providers holding liens under this Act with respect to a particular injured person shall share proportionate amounts within the statutory limitation set forth in subsection (a). The statutory limitations under this Section may be waived or otherwise reduced only by the lienholder. No individual licensed category of health care professional (such as physicians) or health care provider (such as hospitals) as set forth in Section 5, however, may receive more than one-third of the verdict, judgment, award, settlement, or compromise secured by or on behalf of the injured person on his or her claim or right of action. If the total amount of all liens under this Act meets or exceeds 40% of the verdict, judgment, award, settlement, or compromise, then:

(1) all the liens of health care professionals shall not exceed 20% of the verdict, judgment, award, settlement, or compromise; and

(2) all the liens of health care providers shall not exceed 20% of the verdict, judgment, award, settlement, or compromise;

provided, however, that health care services liens shall be satisfied to the extent possible for all health care professionals and health care providers by reallocating the amount unused within the aggregate total limitation of 40% for all health care services liens under this Act; and provided further that the amounts of liens under paragraphs (1) and (2) are subject to the one-third limitation under this subsection.

If the total amount of all liens under this Act meets or exceeds 40% of the verdict, judgment, award, settlement, or compromise, the total amount of all the liens of attorneys under the Attorneys Lien Act shall not exceed 30% of the verdict, judgment, award, settlement, or compromise. If an appeal is taken by any party to a suit based on the claim or cause of action, however, the attorney's lien shall not be affected or limited by the provisions of this Act.

(d) If services furnished by health care professionals and health care providers are billed at one all-inclusive rate, the total reasonable charges for those services shall be reasonably allocated among the health care professionals and health care providers and treated as separate liens for purposes of this Act, including the filing of separate lien notices. For services provided under an all-inclusive rate, the liens of health care professionals and health care providers may be asserted by the entity that bills the all-inclusive rate.

(e) Payments under the liens shall be made directly to the health care professionals and health care providers. For services provided under an all-inclusive rate, payments under liens shall be made directly to the entity that bills the all-inclusive rate.

(Source: P.A. 93-51, eff. 7-1-03.)

(770 ILCS 23/30)

Sec. 30. Adjudication of rights. On petition filed by the injured person or the health care professional or health care provider and on the petitioner's written notice to all interested adverse parties, the circuit court shall adjudicate the rights of all interested parties and enforce their liens. A petition filed under this Section may be served upon an interested adverse party by personal service, substitute service, or registered or certified mail.

(Source: P.A. 93-51, eff. 7-1-03.)

(770 ILCS 23/35)

Sec. 35. Liens created under prior law. A lien validly created under the Clinical Psychologists Lien Act, the Dentists Lien Act, the Emergency Medical Services Personnel Lien Act, Home Health Agency Lien Act, the Hospital Lien Act, the Optometrists Lien Act, the Physical Therapist Lien Act, or the Physicians Lien Act remains in full force and effect on and after July 1, 2003. Such a lien shall be enforceable according to, and otherwise governed by, the provisions of the Act or Code under which it was created, as those provisions existed on June 30, 2003. This Act shall also apply to an insurer and an insurer's reimbursement claims and rights.

(Source: P.A. 93-51, eff. 7-1-03.)

(770 ILCS 23/45)

Sec. 45. Amounts not recovered under lien.

(a) Except as provided in this Section, Nothing in this Act shall be construed as limiting the right of a health care professional or health care provider, or attorney, to pursue collection, through all available means, of its reasonable charges for the services it furnishes to an injured person. Except as provided in this Section, Notwithstanding any other provision of law, a lien holder may seek payment of the amount of its reasonable charges that remain not paid after the satisfaction of its lien under this Act. If the patient provides health insurance information, a health care professional or health care provider is required to submit the professional's or provider's charges to an injured person's insurer; failure to do so will make the health care professional's or health care provider's lien void and will act as a bar to any collection directly against the injured person. The health care professional's or health care provider's lien shall be limited to 66% of the amount that the insurer would have paid had the charges been submitted to the insurer.

(b) If a lien or claim exists with respect to a claim for personal injuries or death and the injured person's recovery is diminished:

(1) by comparative fault, or

(2) by reason of the uncollectability of the full value of the claim for personal injuries or death resulting from limited liability insurance or from any other cause, then the lien or claim shall be diminished in the same proportion as the injured person's recovery is diminished. The party holding the lien or claim shall bear a pro-rata share of the injured person's attorney's fees and litigation expenses and shall be barred from pursuing any claim for the unpaid balance.

(Source: P.A. 93-51, eff. 7-1-03.)