House Bill 1202

AN ACT TO PROVIDE THAT A HOSPITAL, THE ATTORNEY OF THE INJURED PATIENT, AND THE INJURED PATIENT SHALL HAVE A ONE-THIRD LIEN AGAINST CLAIMS BY PATIENTS AND PERSONAL INJURY DAMAGES RECOVERED BY PATIENTS; TO REQUIRE THE LIEN TO BE FILED IN THE OFFICE OF THE CIRCUIT CLERK; TO REQUIRE NOTICE OF JUDGMENT OR AWARD; TO AMEND SECTION 83-9-47, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A HEALTH CARE PROVIDER, THE ATTORNEY AND THE CLIENT SHALL HAVE A LIEN IN AN AMOUNT OF ONE-THIRD OF THE PAYMENT MADE DIRECTLY TO A PATIENT OR POLICYHOLDER BY ANY THIRD-PARTY PAYOR FOR THE MEDICAL CARE OR SERVICES RENDERED BY THAT HEALTH CARE PROVIDER; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) Every person, firm, association, corporation, institution or any governmental unit, including the State of Mississippi, any county or municipalities operating and maintaining a hospital in this state, the attorney of the injured patient, and the injured patient shall each have a lien in an amount equal to one-third (1/3) of all reasonable and necessary charges for hospital care, treatment and maintenance of ill or injured persons, including ambulance services, upon any and all causes of action, suits, claims, counterclaims or demands accruing to the person to whom such care, treatment or maintenance was furnished, or accruing to the legal representatives of such person in the case of such person's death, on account of illness or injuries giving rise to such causes of action or claims and which necessitated such hospital care, treatment and maintenance. The attachment of the lien will include, but not be limited to: third-party liability settlements, first-party auto insurance benefits, underinsured motorist coverage, uninsured motorist coverage and wrongful death claims.

(2) The lien herein created shall not be applicable to accidents or injuries within the purview of the Mississippi Workers' Compensation Law.

(3) The lien shall be filed in the office of the clerk of the circuit court of the county in which the hospital is located, the lien to include a verified statement in writing setting forth the name and address of the patient as it appears on the records of the hospital, and the name and address of the operator thereof, the dates of admission and discharge of the patient therefrom, the amount claimed to be due for such hospital care, and to the best of the claimant's knowledge, the names and addresses of persons, firms or corporations claimed by such ill or injured person or by such person's legal representative, to be liable for damages arising from such illness or injuries. The filing of said lien in the aforementioned manner will be implied notice to all parties having an interest to which the lien may attach.

(4) A judgment, award, settlement or compromise secured by or on behalf of an injured person may not be satisfied without the injured person or his or her authorized representative first giving notice of the judgment, award, settlement or compromise to the health care professional or health care provider that rendered a service in the treatment, care or maintenance of the injured person and no judgment, award, settlement or compromise may be reached without first satisfying the hospital lien.

SECTION 2. Section 83-9-47, Mississippi Code of 1972, is amended as follows:

83-9-47. (1) As used in this section, the following terms shall be defined as follows:

(a) "Third-party payor" means any insurer, nonprofit hospital service plan, health care service plan, health maintenance organization, self-insurer or any person or other entity which provides payment for medical and related services.

(b) "Health care provider" means a physician, optometrist, chiropractor, dentist, podiatrist, pharmacist, psychologist or hospital licensed by the State of Mississippi.

(c) "Patient" means any natural person who has received medical care or services from any medical care provider within the State of Mississippi.

(2) Any third-party payor who pays a patient or policyholder on behalf of a patient directly for medical care or services rendered by a health care provider shall provide information concerning the amount, date and nature of any such payment to the provider of services. The information may be provided by telephone, facsimile or by mailing a copy of the "explanation of benefits" to the provider. If the information is provided by sending a copy of the "explanation of benefits" to the provider, then the third-party payor may require that the reasonable cost of producing and mailing the information be paid by the provider. A health care provider shall have a lien in an amount equal to one-third (1/3) of the gross proceeds of the payment made directly to the patient or policyholder by any third-party payor for the medical care or services rendered by that health care provider, and both the attorney of the injured patient, and the injured patient shall each have liens in amounts equal to one-third (1/3) of such gross proceeds. The requirements of this subsection shall not apply to the following: a fixed-indemnity policy, a limited benefit health insurance policy, medical payment coverage or personal injury protection coverage in a motor vehicle policy, coverage issued as a supplement to liability insurance or workers' compensation.

SECTION 3. This act shall take effect and be in force from and after July 1, 2011.