Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 8.01-66.9:2 as follows:

§8.01-66.9:2. Lien in favor of the Department of Medical Assistance Services on claim for personal injuries.

A. When the Department of Medical Assistance Services has a lien on the claim of an injured person or his personal representative for funds that may be due to him from insurance moneys received for medical services provided pursuant to §8.01-66.9 and following the receipt of all funds due to the injured party from insurance moneys on a claim for personal injury, medical malpractice, or wrongful death, and by the request of the injured person or his personal representative, the Department of Medical Assistance Services shall within 30 days from the receipt of such request provide such injured party or his personal representative with (i) an itemized statement detailing all health care expenses paid for by a program of the Department for services rendered or performed and for equipment or devices used due to alleged injury on which the claim is based and (ii) a sum specific demand for payment in full and final resolution, satisfaction, and compromise of the Department's lien pursuant to this section and its rights pursuant to subsection C of §32.1-325.2.

B. If the Department fails to comply with the provisions of subsection A, the injured party or his personal representative may submit to the Department an offer of the payment for a sum certain in satisfaction of the lien and shall include in such offer an itemized statement of all health care expenses paid for by a program of the Department for services rendered or performed and for equipment or devices used due to an alleged injury on which the claim is based. The Department shall accept or reject such offer within 30 days of receipt. If such offer is rejected, the Department shall provide (i) an itemized statement detailing all health care expenses paid for by a program of the Department for services rendered or performed and for equipment or devices used due to alleged injury on which the claim is based and (ii) a sum specific demand for payment in full and final resolution, satisfaction, and compromise of the Department's lien pursuant to this section and its rights pursuant to subsection C of §32.1-325.2.

C. If the Department does not respond to the offer in accordance with the provisions of subsection B, such offer shall be deemed to have been accepted by the Department as payment in full and final resolution, satisfaction, and compromise of the Department's lien pursuant to this section and its rights pursuant to subsection C of §32.1-325.2.

The provisions of this section shall apply whenever any person sustains personal injuries and receives treatment, medical attention, or nursing services or care, or receives pharmaceutical goods or any type of medical or rehabilitative device, apparatus, or treatment that is paid for by any program of the Department of Medical Assistance Services.