HB279 Summary

• Amends Section 35-11-371 to delete the provision allowing contractual agreements between hospitals and health insurers to supersede hospital lien laws.

• Hospitals may perfect liens against injured persons only after submitting accurate claims to health care payors and receiving denial, or within specified timeframes (20 days for known coverage denial, 20 days after discharge for unknown coverage).

• Creates new Section 27-12-25 prohibiting health insurers, health maintenance organizations, and health care service plans from denying, delaying, or deferring payment on otherwise valid claims based solely on the injured person being treated for injuries that may give rise to a third-party liability claim.

• Permits insurers to recoup payments through subrogation rights against responsible third parties, but limits recoupment amounts to the actual amounts paid by the insurer for health care services.

• Applies prospectively only to contracts entered into, amended, or renewed on or after the effective date, which is the first day of the third month following passage and approval.