2000-02-01                     Senate Journal                      Page 2143
SB 233                                                                       
SENATE BILL NO. 233 BY THE SENATE RULES COMMITTEE                              
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
                                                                               

2000-02-01                     Senate Journal                      Page 2144
SB 233                                                                       
An Act relating to priorities, claims, and liens for                          
payment for certain medical services provided to                               
medical assistance recipients; and providing for an                            
effective date.                                                                
                                                                               
was read the first time and referred to the Health, Education and              
Social Services, Judiciary and Finance Committees.                             
                                                                               
Fiscal note published today from Department of Health and Social               
Services.                                                                      
                                                                               
Governors transmittal letter dated January 31:                                 
                                                                               
Dear President Pearce:                                                         
                                                                               
In the interest of recovering medical assistance payments due to the           
state, I am transmitting this bill that grants the Department of Health        
and Social Services an express right to a lien against any money               
recovered from a third party for assistance payments. The bill also            
strengthens the department's existing right of third party subrogation         
and extends the time period from six months to one year for medical            
providers to file claims with the department for medical services              
provided.                                                                      
                                                                               
Under the bill, when a state medical assistance recipient recovers             
money from a third party who is found liable for the recipient's               
medical expenses, the department would have a lien against that                
recovery. The department's lien would be reduced by a pro rata share           
of the recipient's attorney fees and litigation costs incurred in the          
recovery. If the department incurs attorney fees and costs to enforce          
the lien, the amount of the lien would be increased to cover those             
fees and costs. The department's lien would take priority over a lien          
filed by a hospital, nurse, or physician.                                      
                                                                               
Under existing law, when a state medical assistance recipient has a            
claim against a third party for the recipient's medical expenses, the          
department has a right of subrogation. This law allows the                     
department to stand in the place of the recipient to enforce the               
recipient's claim  for medical  assistance payments against an insurer         

2000-02-01                     Senate Journal                      Page 2145
SB 233                                                                       
or other third party. This bill adds a requirement that the recipient          
give the department notice if the recipient has an action or claim             
against a third party so that the department may enforce its                   
subrogation rights. The bill also expressly grants the department the          
right to bring an action to recover on a subrogated medical assistance         
claim regardless of whether the recipient acts or fails to act to              
enforce the claim.                                                             
                                                                               
I urge your support of this important legislation.                             
                                                                               
					Sincerely,                                                                
					/s/                                                                       
					Tony Knowles                                                              
					Governor