HB221 Alabama 2020 Session

Summary

Primary Sponsor

David FaulknerRepresentative

Republican

Session

Regular Session 2020

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. 35-11-371, 35-11-372, am'd.

Summary

HB 221 would require hospitals to bill a patient’s health insurance for treatment (with limited exceptions) and outline when hospital liens on settlements or judgments may be used in certain circumstances.

What This Bill Does

It shifts payment responsibility to health insurers for injured patients’ hospital care, allowing exceptions for approved copays and deductibles. It also clarifies when and how a hospital lien can be placed on a patient’s recovery from settlements or judgments, including timing and procedural steps. The bill defines key terms and sets out notice and filing requirements for lien processes, and it declares that contrary contractual provisions are void as public policy. It becomes law on a set date after passage.

Who It Affects

• Injured persons/patients: most of their hospital bills would be paid by their health insurance rather than by pursuing third-party payments, with copays/deductibles still owed; liens on settlements or judgments would be possible only under specified circumstances.
• Hospitals and health care payors/insurers: must bill the patient’s insurer first and follow defined lien procedures if pursuing a lien; liens are subject to timing, notice, and probate court filing requirements, and contracts attempting to bypass this act are considered void.

Key Provisions

• Hospitals must seek payment for treatment solely from the patient’s health insurance provider, with exceptions for approved copays and deductibles, unless certain circumstances apply.
• Hospitals may perfect a hospital lien against the patient’s recovery from settlements or judgments only in specified circumstances, with defined timing and procedures for lien perfection.
• The bill defines 'health care payor' and 'satisfy the claim,' and requires detailed steps (including filing with the probate court and notifying liable parties) for lien processes; it also voids contracts that would require liens contrary to this act as a matter of public policy.
• The act becomes effective on the first day of the third month after it passes and is approved.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Hospitals