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Senate judiciary committee advances bill to push hospitals to bill patient insurers instead of filing probate liens
Summary
The committee approved MySB210 with an amendment that substitutes statutory "clean claims" language and requires a reasonable inquiry about a patient's coverage before hospitals may file probate liens; sponsors say the change protects patients on Medicare, Medicaid and TRICARE and addresses hospital payment concerns.
The Senate Judiciary Committee on Monday approved MySB210, a bill that would, in certain circumstances, require hospitals to bill a patient's health plan (including Medicare, Medicaid or TRICARE) rather than filing a hospital lien in probate court, and adopted an amendment that substitutes existing statutory "clean claim" language and requires a reasonable inquiry into whether a patient has health coverage before a lien is filed.
Supporters said the change would protect injured patients who are not at fault from having liens recorded in their names and would direct hospitals to pursue payment from a patient's insurer when appropriate. "Do we want that individual who has been injured through no fault of their own, do we want their insurance, health insurance, be it Medicare or Medicaid or TRICARE to pay for that hospital bill? I think we do," said Ms. Chan, the bill sponsor.
The amendment, explained by Mr. Haas, replaces an older, nonstatutory phrase in current law—"accurate and properly coded claim"—with the existing statutory definitions for "clean electronic claims" and "clean written claims," making the billing standard specific to established law. The amendment also "require[s] just a reasonable inquiry as to whether the person has health coverage prior to a lien being placed on them," Haas said.
Committee members raised two related lines of concern. Some questioned whether directing hospitals to accept programmatic rates (for Medicare/Medicaid/TRICARE) could reduce provider participation or shrink reimbursement margins; others pressed for clarity on how subrogation and recovery rights among insurers and providers would work if multiple payors claim a recovery. Mr. Haas and other supporters said existing subrogation rights for Medicare, Medicaid and private carriers would remain intact.
The committee adopted the amendment by voice vote, with a formal roll call taken on the bill as amended. The chair thanked the hospital association and other stakeholders and said staff would continue to work with interested parties to refine the language.
The committee's action advances the bill to the full Senate for further consideration; committee supporters said they would continue negotiating technical changes with providers and insurers.
The committee record shows the bill was called and advanced out of committee with the adopted amendment; members indicated continued work with stakeholders on statutory detail.
Ending: Lawmakers said they will keep negotiating technical clarifications as the bill moves toward the floor. No final Senate action was recorded in the committee transcript.
