2000-02-02                     House Journal                      Page 2061
HB 325                                                                       
HOUSE BILL NO. 325 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"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 & Social         
Services, Judiciary, and Finance Committees.                                   
                                                                               
The following fiscal note applies:                                             
                                                                               
Fiscal note, Dept. of Health & Social Services, 2/2/00                         
                                                                               
The Governor's transmittal letter dated January 31, 2000, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
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         

2000-02-02                     House Journal                      Page 2062
HB 325                                                                       
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 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"