HCS HB 1082 -- HEALTH CARE LIENS

SPONSOR:  Pratt (Dempsey)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Judiciary
by a vote of 6 to 5.

This substitute changes the laws regarding health care liens.
Currently, hospitals, physicians, and other health care providers
whose services have been authorized in advance by the employer or
insurer can give notice to the Division of Workers' Compensation
in the Department of Labor and Industrial Relations for services
provided for a work-related injury.  The substitute removes the
requirement that the services must be authorized in advance by
the employer or insurer.  Currently, the insurance carrier is
allowed to pay the amount due secured by the health care
provider's lien directly to the provider if the claimant
authorizes it, does not challenge the amount of customary
charges, and the health care provider releases the claimant from
further liability on the cost of the services and treatment
provided.  These conditions are removed, and the insurance
carrier is required to pay the amount due secured by the health
care provider's lien directly to the health care provider.

The substitute also allows hospitals and clinics to place a lien
on any person entitled to bring a wrongful death action.

FISCAL NOTE:  No impact on state funds in FY 2007, FY 2008, and
FY 2009.

PROPONENTS:  Supporters say that the bill will help hospitals
recover the costs of treatment more easily.  Hospitals will be
paid directly by the insurance companies without the
authorization from the patient where the provider has a lien for
the cost of medical care.

Testifying for the bill were Representatives Dempsey and Faith;
Cathy Hughes; and Missouri Hospital Association.

OPPONENTS:  Those who oppose the bill say that it will encourage
medical care providers to provide unnecessary care for injuries
not related to the lawsuit damages that the health care lien is
imposed upon.  The bill also provides a disincentive to settle
insurance claims and takes away the claimant's or patient's right
to challenge the insurance claims.

Testifying against the bill was Missouri Association of Trial
Attorneys.

Alex Curchin, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:42 am