SB 1522 Summary

• Establishes a $20,000 exemption from health care provider liens on third-party judgments, settlements, or awards, with liens of $20,000 or less subject to prompt release on written request.

• Requires health insurance contracts to expressly permit liens or assignments for liens to be enforceable; without such contract language, liens are invalid unless services are uncovered or patient is uninsured.

• Allows health care providers to enforce liens for patient copayments and deductibles under health insurance plans regardless of the insurance contract requirement.

• Creates a new requirement (section 33-937) that health care providers must compromise liens to provide "fair and equitable" settlements, considering injury severity, available insurance, and other case circumstances.

• Permits injured persons to file lawsuits for judicial determination of appropriate lien compromises if parties cannot agree, with prevailing parties prohibited from recovering attorney fees in such actions; applies to liens filed for services provided after December 31, 2020.