SB210 Alabama 2025 Session

Summary

Primary Sponsor

Will BarfootSenator

Republican

Session

2025 Regular Session

Title

Hospital liens, to limit

Summary

SB210 would regulate hospital liens for injured patients by allowing government-payor billing options, capping lien amounts, and giving patients access to their records.

What This Bill Does

Hospitals with patients using government health programs can choose to bill the payor or file a lien; if a lien is used, its amount is tied to the government's prospective reimbursement plus an extra percentage. For patients with no health coverage, the lien is capped at Medicare’s prospective reimbursement plus an extra percentage. Hospitals may adjust the lien size based on how long it takes to receive payment, and the bill caps recovery from third-party insurer policy limits. It also requires hospitals to provide patients with copies of medical records and an itemized charge statement supporting the lien, and makes technical updates to current law.

Who It Affects

• Hospitals: must decide whether to bill government payors or file liens, may adjust lien amounts based on payment timing, and must file liens with the probate court and provide records on request.
• Injured patients: protections on lien amounts (especially when third-party policies or government payors are involved), and right to obtain copies of medical records and an itemized list of charges supporting the lien.

Key Provisions

• Hospitals may either bill a government health payor (e.g., Medicare, Medicaid, CHIP, TRICARE, VA, Indian Health Service) or file a hospital lien when a patient is covered by a government program.
• If a lien is filed, its amount is tied to the government payor’s prospective reimbursement plus an additional percentage; for patients with no coverage, the lien is limited to Medicare’s prospective reimbursement plus 10%.
• If the patient’s only coverage is a governmental payor, the hospital may perfect the lien or bill the payor; if the hospital does not bill the payor, the lien is limited to the prospective reimbursement plus 10%, with payment-based reductions (20% at 180 days, 25% at 240 days, 30% after 240 days).
• If the lien amount exceeds a third-party policy limit, the lien is capped to policy limits, and the hospital’s total recovery cannot exceed 30% of the policy limit when there are other liens.
• Hospitals must file a verified statement with the probate court to perfect a lien, including patient and hospital information, dates of admission/discharge, amount claimed, and potential liable parties; notices must be sent to liable parties and the patient.
• The patient can request a copy of medical records and an itemized statement of charges supporting the lien, within 30 days of a request.
• The act becomes effective October 1, 2025.

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

Subjects

Civil Procedure