Bill Text: IL HB3206 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3206 Detail]

Download: Illinois-2011-HB3206-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB3206 Introduced , 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.
LRB097 08386 AJO 48513 b
A BILL FOR
HB3206 LRB097 08386 AJO 48513 b
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

HB3206 - 2 - LRB097 08386 AJO 48513 b
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

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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

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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

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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.

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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.)