Current Status Bill Number:4671 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19960226 Primary Sponsor:Seithel All Sponsors:Seithel and Fleming Drafted Document Number:bbm\10537ac.96 Residing Body:House Date Tabled:19960514 Current Committee:Labor, Commerce and Industry Committee 26 HLCI Subject:Health Care Claim Recovery Act
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19960514 Tabled in Committee 26 HLCI
House 19960226 Introduced, read first time, 26 HLCI
referred to Committee
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TO AMEND TITLE 29, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO MORTGAGES AND OTHER LIENS, TO ENACT THE "HEALTH CARE CLAIM RECOVERY ACT" BY ADDING CHAPTER 17 SO AS TO PROVIDE FOR A LIEN FOR THE RECOVERY OF THE COST OF MEDICAL SERVICES RENDERED AND TO PROVIDE PROCEDURES FOR PERFECTING, CHALLENGING, AND ENFORCING THE LIEN.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Title 29 of the 1976 Code is amended by adding:
Section 29-17-05. This chapter may be cited as the Health Care Claim Recovery Act.
Section 29-17-10. A person who, or a corporation or governmental entity which provides drugs, medical supplies, ambulance services, or medical services as a physician, dentist, registered nurse, licensed practical nurse, nursing home, or hospital is entitled to a lien upon the sums recovered by the patient against third parties liable for damages for personal injury or paid in compensation for or settlement of personal injury, whether in litigation or otherwise. Where damages are recovered for or on behalf of minors or incompetent persons, the lien attaches to the sum recovered as fully as if the person were sui juris. However, the subrogation interest of the Department of Health and Human Services for Medicaid services set out in Title 43, Article 5, is superior to a lien filed under this section.
Section 29-17-20. (A) In order to perfect the lien provided for in Section 29-17-10, an authorized agent of the person or entity seeking a lien, within one year after the patient has been discharged from or by the person or entity, must file in the office of the clerk of court of the county in which the entity is located and in the county where the patient resides, if a resident of this State, a verified statement of the lien setting forth the:
(1) name and address of the patient;
(2) name and location of the entity;
(3) name and title of the agent, servant, or employee of the person or entity in charge of the lien;
(4) date of admission and discharge of the patient;
(5) amount claimed to be due for medical care or services; and
(6) if known to the claimant, names and addresses of all persons, firms, corporations, and other entities claimed by the patient to be the entities liable for the damages arising from the injuries.
(B) To the extent known to the claimant, a copy of the lien must be mailed to a person, firm, corporation, or entity claimed to be liable for the damages. The claim also may be placed against the liable third party, either directly with the liable third party or the patient's representative.
Section 29-17-30. Each county clerk of court shall provide and maintain a health care lien book with an appropriate index in which the clerk shall enter the date and hour of the filing of a lien, the names and addresses of the entity, the name of the patient, the amount claimed, and the names of those claimed to be liable for the damages. The clerk shall charge a ten dollar fee for each lien filed.
Section 29-17-40. (A) No release of the cause or causes of action or of a judgment or of a covenant not to sue or bring an action is valid or effectual against a lien created in Section 29-17-10 unless the lienholder joins in the execution of the release, discharge, or covenant. Upon failure of the parties to obtain a separate release of the lien from the lienholder or to have the lienholder join in the release, the lienholder may maintain an independent cause of action to enforce the lien by an action against either the patient, attorney, or the person, firm, corporation, or other entity liable for the damages. The successful party in an action to enforce the lien after payment by the claimant to the patient and release, discharge, or other covenant is entitled to reasonable attorney's fees.
(B) No release or covenant not to bring an action which is made within one year after the patient was discharged by the person from the entity is valid against the lien perfected within one year as provided in subsection (A), regardless of whether release, covenant not to sue, settlement, or other discharge was made before the time of the filing of the lien as provided in Section 29-17-20.
Section 29-17-50. A physician may take action against a potentially liable third party to determine liability for injuries sustained by a person or firm.
Section 29-17-60. In that a lien attaches upon all funds paid to a person in compensation for settlement of personal injuries, it is the duty of the person receiving the funds before disbursement to retain from the recovery or compensation received a sufficient amount to pay the just, reasonable, and bona fide claims for drugs, medical supplies, ambulance, medical, and hospital services after having received a copy of the lien or notice of the lien. These medical expenses are to be paid before the distribution of other funds. Entry of the lien and the date and hour of filing by the clerk of court in the health care lien book or notification by certified mail by the person or entity to the patient of the lien or to the attorney who represents the patient is considered actual notice to the person receiving the funds and charged with the disbursement.
Section 29-17-70. A person desiring to contest a lien or the reasonableness of the charges may do so by filing a motion to quash or reduce the lien in the circuit court of the county in which the lien was perfected within the suit for personal injuries already pending before the court or by an independent action for declaratory judgment seeking reduction in release of the lien filed. The amount in dispute must not be disbursed to the patient until the court determines the reasonableness of the lien. If charges by a physician are found to be `unreasonable', the money must be returned to the insurance company or liable third party in the amount of the medical expenses times the multiplier used to calculate the settlement cost. The `unreasonable' charges may not be retained by the patient or the attorney.
Section 29-17-80. Patients are entitled to collect only one time for the same medical expenses. Where there is more than one liable party, payment must be coordinated.
Section 29-17-90. If a liable third party has determined payment for medical services to be appropriate, the liable third party may release funds payable for medical services directly to the provider of medical services without release from the patient.
Section 29-17-100. Nothing in this chapter may be construed to prevent the hospital or health care provider from pursuing its legal remedies against the patient including, but not limited to, an action for breach of contract."
SECTION 2. This act takes effect upon approval by the Governor.