HB11 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Connie C. Rowe
Republican
Session: Regular Session 2019
Title: Hospitals, require hospitals to bill an injured person's health insurance and only seek compensation from health insurance unless certain circumstances apply, clarifying hospital lien provisions, Secs. 35-11-370 to 35-11-375, inclusive, am'd.
Summary: HB 11 requires hospitals to bill the injured person’s health insurance (not the person) and allows hospital liens in certain cases when the person is awarded damages.
What This Bill Does
Hospitals must seek payment only from the injured person's health care payor, with exceptions for approved copays and deductibles; the bill defines what counts as satisfying a claim. It sets out when a hospital can perfect a lien against any settlement or judgment the injured person may receive, and the steps and timelines for filing and notification. It also shields liens from invalid releases or settlements and allows a lienholder to pursue damages if a release or settlement impairs the lien. The act becomes law after the governor signs it and applies to claims arising after the effective date.

Who It Affects
Injured individuals or their representatives, whose medical bills are intended to be paid by their health insurance and who may have liens placed on any future damages awarded.
Hospitals, which must bill health care payors and follow lien procedures to secure potential recoveries.
Health care payors and insurers, who must process claims and respond to lien and denial situations under the new rules.
Third parties liable for damages and the probate system, which handles filing, recording, and notice of hospital liens.

Key Provisions
Hospitals must seek compensation solely from the patient s health care payor with exceptions for approved copays and deductibles unless other circumstances apply.
Definitions of health care payor and when a claim is considered satisfied, including full payment or contract driven payment that extinguishes the patient s obligation.
Hospital liens can be perfected for insured patients after denial of an accurate claim or within 20 days for certain cases, with 45 days to satisfy the claim; timelines differ if the patient is not known to be covered or has government payors.
Hospitals must file a verified statement with the county probate court within a short period after discharge, detailing patient info, hospital info, dates, amount due, and liable parties, with notice to those liable and to the patient.
The probate court must maintain a lien book recording lien details; any release or settlement must involve the lienholder and cannot defeat the lien unaided; the lienholder can pursue damages if releases impair the lien.
The act becomes effective on the first day of the third month after passage and applies to claims arising after that date.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Hospitals