BILL NUMBER: AB 2491	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Adams

                        FEBRUARY 19, 2010

   An act to add Section 3041 to the Civil Code, relating to medical
liens.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2491, as introduced, Adams. Medical liens.
   Existing law provides, other things being equal, different liens
upon the same property have priority according to the time of their
creation, except as specified.
   Under existing law, a hospital and any hospital affiliated health
facility that furnishes emergency and ongoing medical or other
services to the victim of an accident or negligent or other wrongful
conduct have a lien upon any damages recovered by the victim against
a 3rd party in the amount of the services provided. Existing law
provides that, if prescribed notice of the lien is given to the
persons known to the hospital and alleged to be liable on the claim,
any person so notified who is liable on the claim and who makes
payment on the claim to the injured person or his or her attorney or
representative without paying the lienholder is liable to the
hospital for the amount of the lien, as specified.
   Under existing law, a county that furnishes hospital, medical,
surgical, or dental care and treatment to a person who is injured or
suffers a disease, under circumstances creating a tort liability upon
a 3rd party to pay damages, has the right to recover the reasonable
value of the care and treatment provided from the 3rd party,
including a first lien against any judgment recovered by the injured
or diseased person against the 3rd party to the extent of the
reasonable value of the care and treatment provided, as specified.
   Existing law provides that the Director of Health Care Services
has a right to recover the reasonable value of benefits provided to a
beneficiary because of an injury for which a 3rd party or an
insurance carrier is liable. Subject to the director's prior right of
recovery and first lien, a medical care provider who has rendered
services to the beneficiary and who has received payment under the
Medi-Cal program is entitled to file a 2nd lien for services provided
against any judgment, award, or settlement obtained by the
beneficiary or director against the 3rd party, as specified. The
liens of the director and any provider are payable after payment of
litigation expenses and attorney's fees.
   Existing law provides that no lien asserted by a licensee of the
Department of Managed Health Care or the Department of Insurance, and
no lien of a medical group or an independent practice association,
to the extent it asserts or enforces a lien, for the recovery of
money paid or payable to or on behalf of an enrollee or insured for
medical services provided under a health care service plan contract
or disability insurance policy, may exceed specified amounts.
   This bill would provide that the provider of any medical care or
services to an injured party shall have an implied lien upon any
damages recovered by that person by judgment, settlement, or
compromise in the amount of the reasonable charges of the provider
for that care or services, if the attorney for the injured party
submits a claim for settlement purposes to an insurance company for
that medical care or services on behalf of the injured party. The
implied lien would be limited in application to only the attorney,
and would not apply as to the insurance company.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 3041 is added to the Civil Code, to read:
   3041.  The provider of any medical care or services to an injured
party shall have an implied lien upon any damages recovered by that
person by judgment, settlement, or compromise in the amount of the
reasonable charges of the provider for that care or services, if the
attorney for the injured party submits a claim for settlement
purposes to an insurance company for that medical care or services on
behalf of the injured party. The implied lien shall apply as to only
the attorney, and not as to the insurance company.