SB 5 will change the lien requirements of hospitals
STATEHOUSE —Senate Bill (SB) 5 passed out of the Indiana House today with a 65-28 vote. SB 5, co-sponsored by Rep. Sean Eberhart (R-Shelbyville), would provide protection for Hoosier patients who are victims of negligence from another person or corporation and have acquired hospital and/or ambulance liens.
“It is important that we are doing what we can to protect Hoosiers,” said Rep. Eberhart. “Patients can be further victimized by hospitals suing them after a lien is released and a settlement has been received. SB 5 will provide protection to the patient’s portion of the settlement that is given to the victim for personal and physical damages.”
Currently, an individual who is admitted into a hospital and receives care regarding personal injuries caused by carelessness of another person or corporation is allowed to have a lien filed against them by the hospitals and/or ambulances.
Under SB 5, if a hospital receives a settlement amount that is less than their current lien the hospital no longer has the ability to go after the patient for the remainder of their charges. Hospitals would continue to receive the liens on copays and deductibles that they are owed.
Along with Rep. Eberhart, sponsors of the bill in the House were Rep. Jud McMillin (R-Brookville), Rep. Ed Delaney (D-Indianapolis), and Rep. Charles Mosley (D-Portage).
“The premise behind hospital liens began in 1933. Since then, health insurance has gone through dramatic changes,” said Rep. Eberhart. “The last thing a victim needs to deal with is a hospital pursuing them after a claim has been settled in court. It is imperative we provide this protection for those victims.”