Bill > SB210

This bill modifies Alabama's existing law regarding hospital liens, introducing several key changes to how hospitals can claim liens against patient settlements. The bill expands definitions of healthcare payors to include governmental programs like Medicare and Medicaid and provides detailed guidelines for how hospitals can perfect and pursue liens under different coverage scenarios. Specifically, the bill limits hospital liens based on the type of patient coverage, establishing sliding percentage scales for lien recovery (ranging from 20-30% depending on payment timing) and capping liens at Medicare-equivalent reimbursement rates plus 10% for patients with no insurance. The legislation also mandates that hospitals must submit accurate, properly coded claims to healthcare payors before establishing a lien and requires hospitals to provide patients with medical records and itemized statements within 30 days of a written request. Additionally, the bill streamlines filing procedures, requiring hospitals to file liens with the county probate court and notify potentially liable parties, and ensures more transparency in the lien process. The new law will take effect on October 1, 2025, providing hospitals and healthcare providers time to adjust to the updated regulations.

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https://alison.legislature.state.al.us/bill-search