AB 183 — Revises provisions governing the collection of a hospital bill. (BDR 40-694)

(ReprintedAssembly withBill amendmentsNo. adopted on June 3, 2017) SECOND REPRINT A.B.

183183–Assemblyman AOhrenschall SSEMBLYCHAPTER.......... B ILLN O.

183–A SSEMBLYMAN O HRENSCHALL PREFILED FEBRUARY 13, 2017 ____________ Referred to Committee on Judiciary SUMMARY—Revises provisions governing the collection of a hospital bill.

(BDR 40-694) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law limits the collection rights of a hospital if a patient is covered by a policy of health insurance issued by a third party and the hospital has a contractcontractd by a with that party.

The hospital may not collect or attempt to collect its charges from an insurer other than a health insurer, including an insurer that provides coverage under a policy of casualty or property insurance.

Section 2 also deletes the specific reference to property insSectioninsuSection 2 additionally requires a hospital that collects or receives any payments from an insurer that provides medical payment coverage under a policy of casualty insurance to return to the patient any amount collected or received that is in excess of the deductible, copayment or coinsurance payable by or on behalf of the patient under the policy of health insurance not later than 30 days after a determination is made concerning coverage.

Existing law provides that a hospital has statutory liens for any amount due to liens apply to any award of damages or settlement obtained by the injuredhospital personfor ore the personalreasonable representativevalue of the injuredcare personrendered fromto aan person responsible for the injury causing the hospitalization or, in the case of a county or district hospital, any - *AB183_R2* – 2 – real property of the injured personperson. or other responsible party.

(NRSThe 108.590,the 108.662)personal Underrepresentative section 2.5 of thisthe bill, if a hospital provides care to an injured person whofrom has a policyperson ofresponsible healthfor insurancethe issuedinjury bycausing a third party and the hospitalhospitalization judgmentor, orin settlement, the hospitalcase is required to send a notice of intent to file a liencounty toor certaindistrict personshospital, notany laterreal thanproperty 90 days after the termination of the hospitalizationinjured ofperson theor injuredother person.responsible party.

Within(NRS 30108.590, days108.662) afterUnder sendingsection such2.5 of this bill, if a notice,hospital sectionprovides 2.5care requiresto an injured person who has a policy of health insurance issued by a third party and the hospital tohas proceeda contract with anythat effortsparty and wishes to collectbe able to perfect a statutory lien on anya amountjudgment owedor tosettlement, the hospital inis accordancerequired withto existingsend law.a notice of intent to file a lien to certain persons not later than 90 days after the termination of the hospitalization of the injured person.

SectionWithin 2.530 additionallydays beafter providedsending noticesuch ofa anynotice, judgment,owed settlementto orthe compromise.hospital in accordance with existing law.

Section 2.5 additionallyamount provides that if a hospital provides notice of intent to file a lien, the hospital must Sectionbe 3.7provided notice of thisany billjudgment, makessettlement conformingor changes.compromise.

Section 3.7 of this bill makes conforming changes.

- 79th Session (2017) – 2 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

If the hospital collects or receives any payments from an insurer that provides coverage for medical payments under a policy of casualty insurance, the hospital shall, not later than 30 days after a determination is made concerning coverage, return to the patient any amount collected or received that is in excess of the - *AB183_R2* – 3 – deductible, copayment or coinsurance payable by or on behalf of the patient under the policy of health insurance.

This section does not limit any rights of a patient to contest an attempt to collect an amount owed to a hospital, - 79th Session (2017) – 3 – including, without limitation, contesting a lien obtained by a hospital.

(a) An insurer, as defined in NRS 679B.540;

If a hospital provides hospital care to an injured person who has a policy of health insurance issued by a third party that provides health coverage for care provided at the hospital and the hospital has a contractual agreement with the third party and wishes to be able to perfect a lien pursuant to NRS 108.610, the hospital shall, not later than 90 days after the terminationby ofregistered hospitalization,or sendcertified mail to:d a notice of intent to file a lien by(a) registeredThe orinsurance certifiedcarrier, mailif to:known, which has insured against liability of the person alleged to be responsible for causing the injury and liable on account thereof and from which damages are claimed and any legal representative of that person;

(a)and (b) The insuranceinjured carrier,person ifor known,personal whichrepresentative has insured against liability of the personinjured allegedperson, toas beapplicable, responsible for causing the injury and liable on account thereof and from which damages are claimed and any legal representative of thatthe person;injured person or personal representative.

and - *AB183_R2* – 4 – (b) The injured person or personal representative of the injured person, as applicable, and any legal representative of the injured person or personal representative.

If an injured person or the personal representative of an injured person is awarded by judgment or obtains by a settlement - 79th Session (2017) – 4 – or compromise a sum of money after a notice of intent to file a lien is received pursuant to this section:

andand(b) (b) The insurance carrier and any attorney holding the money in trust shall proceed as if the lien is perfected pursuant to NRS 108.610 unless the hospital fails to comply with subsection 2.

Sec.Secs.

2.7.2.7, 2.9 and 3.

2.9.

(Deleted by amendment.) Sec.

3.

(Deleted by amendment.) Sec.

No lien shall apply or be allowed against any sum incurred by the injured party for necessary attorney fees, costs and expenses incurred by the injured party in securing a settlement, compromisecompromisees or recovering damages by an action at law.

- *AB183_R2* – 5 – 1.] must comply with the provisions of section 2.5 of this act, if applicable, and:

- 79th Session (2017) – 5 – (a) The county recorder of the county wherein the hospital is located;

3.serve a certified copy of the notice of lien by registered or certified mail upon the insurance carrier, if known, which has insured against liability of the person alleged to be responsible for causing the injury and liable for damages on account thereof and from which damages are claimed.

Before the date of judgment, settlement or compromise, serve a certified copy of the notice of lien by registered or certified mail upon the insurance carrier, if known, which has insured against liability of the person alleged to be responsible for causing the injury and liable for damages on account thereof and from which damages are claimed.