Full Text of HB4189 98th General Assembly
HB4189 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB4189 Introduced , by Rep. Dwight Kay SYNOPSIS AS INTRODUCED: |
| 770 ILCS 23/10 | | 820 ILCS 305/5 | from Ch. 48, par. 138.5 | 820 ILCS 305/21 | from Ch. 48, par. 138.21 |
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Amends the Health Care Services Lien Act. Deletes language exempting services rendered under the provisions of the Workers' Compensation Act or the Workers'
Occupational Diseases Act from the types of services which give rise to a health care services lien. Amends the Workers' Compensation Act. Provides that a medical provider may have or claim a lien upon any reward, judgment, or fund out of which the employee might be compensated by a third party, provided that the lien complies with certain billing conditions. Makes a corresponding change.
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| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Health Care Services Lien Act is amended by | 5 | | changing Section 10 as follows:
| 6 | | (770 ILCS 23/10)
| 7 | | Sec. 10. Lien created; limitation.
| 8 | | (a) Every health care professional and health care provider | 9 | | that renders any
service
in the treatment, care, or maintenance | 10 | | of an injured person , except services
rendered under the | 11 | | provisions of the Workers' Compensation Act or the Workers'
| 12 | | Occupational Diseases Act, shall have a lien
upon all
claims | 13 | | and causes of action of the injured person for the amount of | 14 | | the health
care
professional's or health care provider's | 15 | | reasonable charges up to the date of
payment of
damages to the | 16 | | injured person. The total amount of all liens under this Act,
| 17 | | however, shall
not exceed 40% of the verdict, judgment, award, | 18 | | settlement, or
compromise secured
by or on behalf of the | 19 | | injured person on his or her claim or right of action.
| 20 | | (b) The lien shall include a written notice containing the | 21 | | name and
address of
the injured person, the date of the injury, | 22 | | the name and address of the health
care
professional or health | 23 | | care provider, and the name of the party alleged to be
liable |
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| 1 | | to
make compensation to the injured person for the injuries | 2 | | received. The lien
notice shall
be served on both the injured | 3 | | person and the party against whom the claim or
right of
action | 4 | | exists.
Notwithstanding any other provision of this Act, | 5 | | payment in good faith to any
person other than the healthcare | 6 | | professional or healthcare provider claiming
or asserting such | 7 | | lien prior to the service of such notice of lien shall, to
the | 8 | | extent of the payment so made, bar or prevent the creation of | 9 | | an
enforceable lien.
Service shall be made by registered or | 10 | | certified mail or in person.
| 11 | | (c) All health care professionals and health care providers | 12 | | holding liens
under this
Act with respect to a particular | 13 | | injured person shall share proportionate
amounts within
the | 14 | | statutory limitation set forth in subsection (a).
The statutory | 15 | | limitations under this Section may be waived or otherwise | 16 | | reduced
only by the lienholder.
No individual licensed
category | 17 | | of
health care professional (such as physicians) or health care | 18 | | provider (such as
hospitals) as set forth in Section 5,
| 19 | | however, may receive more
than one-third of the verdict, | 20 | | judgment, award, settlement, or compromise
secured by or
on | 21 | | behalf
of the injured person on his or her claim or right of | 22 | | action.
If the total amount of all liens under this Act meets | 23 | | or exceeds 40% of the
verdict, judgment, award,
settlement, or | 24 | | compromise, then:
| 25 | | (1) all the liens of health care professionals shall | 26 | | not exceed 20% of
the verdict, judgment, award, settlement, |
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| 1 | | or compromise; and
| 2 | | (2) all the liens of health care providers shall not | 3 | | exceed 20% of the
verdict, judgment, award, settlement, or | 4 | | compromise;
| 5 | | provided, however, that health care services liens shall be | 6 | | satisfied to the
extent
possible for all health care | 7 | | professionals and health care providers by
reallocating the
| 8 | | amount
unused within the aggregate total limitation of 40% for | 9 | | all health care
services liens
under
this Act; and provided | 10 | | further that the amounts of liens under paragraphs (1)
and (2) | 11 | | are subject to the one-third limitation under this subsection.
| 12 | | If the total amount of all liens under this Act meets or | 13 | | exceeds 40% of the
verdict, judgment,
award, settlement, or | 14 | | compromise, the total amount of all the liens of
attorneys | 15 | | under the
Attorneys Lien Act shall not
exceed 30% of the | 16 | | verdict, judgment, award, settlement, or compromise. If an
| 17 | | appeal is taken by any party to a suit based on the claim or | 18 | | cause of
action, however,
the attorney's lien
shall not
be | 19 | | affected or limited by the provisions of this Act.
| 20 | | (d) If services furnished by health care professionals and | 21 | | health care
providers are
billed at one all-inclusive rate, the | 22 | | total reasonable charges for those
services shall be
reasonably | 23 | | allocated among the health care professionals and health care
| 24 | | providers and
treated as separate liens for purposes of this | 25 | | Act, including the filing of
separate lien
notices. For | 26 | | services provided under an all-inclusive rate, the liens of |
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| 1 | | health
care
professionals and health care providers may be | 2 | | asserted by the entity that
bills the
all-inclusive rate.
| 3 | | (e) Payments under the liens shall be made directly to the | 4 | | health care
professionals and health care providers. For | 5 | | services provided under an
all-inclusive rate,
payments under | 6 | | liens shall be made directly to the entity that bills the
| 7 | | all-inclusive rate.
| 8 | | (Source: P.A. 93-51, eff. 7-1-03.)
| 9 | | Section 10. The Workers' Compensation Act is amended by | 10 | | changing Sections 5 and 21 as follows:
| 11 | | (820 ILCS 305/5) (from Ch. 48, par. 138.5)
| 12 | | (Text of Section WITHOUT the changes made by P.A. 89-7, | 13 | | which has been held
unconstitutional)
| 14 | | Sec. 5.
(a) No common law or statutory right to recover | 15 | | damages from the
employer, his insurer, his broker, any service | 16 | | organization retained by the
employer, his insurer or his | 17 | | broker to provide safety service, advice or
recommendations for | 18 | | the employer or the agents or employees of any of them
for | 19 | | injury or death sustained by any employee while engaged in the | 20 | | line of
his duty as such employee, other than the compensation | 21 | | herein provided, is
available to any employee who is covered by | 22 | | the provisions of this Act, to
any one wholly or partially | 23 | | dependent upon him, the legal representatives
of his estate, or | 24 | | any one otherwise entitled to recover damages for such
injury.
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| 1 | | However, in any action now pending or hereafter begun to | 2 | | enforce a
common law or statutory right to recover damages for | 3 | | negligently causing
the injury or death of any employee it is | 4 | | not necessary to allege in the
complaint that either the | 5 | | employee or the employer or both were not
governed by the | 6 | | provisions of this Act or of any similar Act in force in
this | 7 | | or any other State.
| 8 | | Any illegally employed minor or his legal representatives | 9 | | shall, except
as hereinafter provided, have the right within 6 | 10 | | months after the time of
injury or death, or within 6 months | 11 | | after the appointment of a legal representative,
whichever | 12 | | shall be later, to file with the Commission a rejection of his
| 13 | | right to the benefits under this Act, in which case such | 14 | | illegally employed
minor or his legal representatives shall | 15 | | have the right to pursue his or
their common law or statutory | 16 | | remedies to recover damages for such injury or death.
| 17 | | No payment of compensation under this Act shall be made to | 18 | | an illegally
employed minor, or his legal representatives, | 19 | | unless such payment and the
waiver of his right to reject the
| 20 | | benefits of this Act has first
been approved by the Commission | 21 | | or any member thereof, and if such payment
and the waiver of | 22 | | his right of rejection
has been so approved such payment is a | 23 | | bar to a subsequent rejection of the
provisions of this Act.
| 24 | | (b) Where the injury or death for which compensation is | 25 | | payable under
this Act was caused under circumstances creating | 26 | | a legal liability for
damages on the part of some person other |
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| 1 | | than his employer to pay damages,
then legal proceedings may be | 2 | | taken against such other person to recover
damages | 3 | | notwithstanding such employer's payment of or liability to pay
| 4 | | compensation under this Act. In such case, however, if the | 5 | | action against
such other person is brought by the injured | 6 | | employee or his personal
representative and judgment is | 7 | | obtained and paid, or settlement is made
with such other | 8 | | person, either with or without suit, then from the amount
| 9 | | received by such employee or personal representative there | 10 | | shall be paid to
the employer the amount of compensation paid | 11 | | or to be paid by him to such
employee or personal | 12 | | representative including amounts paid or to be paid
pursuant to | 13 | | paragraph (a) of Section 8 of this Act.
| 14 | | Out of any reimbursement received by the employer pursuant | 15 | | to this
Section the employer shall pay his pro rata share of | 16 | | all costs and
reasonably necessary expenses in connection with | 17 | | such third-party claim,
action or suit and where the services | 18 | | of an attorney at law of the employee
or dependents have | 19 | | resulted in or substantially contributed to the
procurement by | 20 | | suit, settlement or otherwise of the proceeds out of which
the | 21 | | employer is reimbursed, then, in the absence of other | 22 | | agreement, the
employer shall pay such attorney 25% of the | 23 | | gross amount of such
reimbursement.
| 24 | | If the injured employee or his personal representative | 25 | | agrees to receive
compensation from the employer or accept from | 26 | | the employer any payment on
account of such compensation, or to |
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| 1 | | institute proceedings to recover the
same, the employer may | 2 | | have or claim a lien upon any award, judgment or
fund out of | 3 | | which such employee might be compensated from such third party. | 4 | | A medical provider may have or claim a lien upon any | 5 | | reward, judgment, or fund out of which the employee might be | 6 | | compensated by a third party, provided that the lien complies | 7 | | with subsection (e) of Section 8.2 of this Act.
| 8 | | In such actions brought by the employee or his personal | 9 | | representative,
he shall forthwith notify his employer by | 10 | | personal service or registered
mail, of such fact and of the | 11 | | name of the court in which the suit is
brought, filing proof | 12 | | thereof in the action. The employer may, at any time
thereafter | 13 | | join in the action upon his motion so that all orders of court
| 14 | | after hearing and judgment shall be made for his protection. No | 15 | | release or
settlement of claim for damages by reason of such | 16 | | injury or death, and no
satisfaction of judgment in such | 17 | | proceedings shall be valid without the
written consent of both | 18 | | employer and employee or his personal
representative, except in | 19 | | the case of the employers, such consent is not
required where | 20 | | the employer has been fully indemnified or protected by
Court | 21 | | order.
| 22 | | In the event the employee or his personal representative | 23 | | fails to
institute a proceeding against such third person at | 24 | | any time prior to 3
months before such action would be barred, | 25 | | the employer may in his own name
or in the name of the | 26 | | employee, or his personal representative, commence a
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| 1 | | proceeding against such other person for the recovery of | 2 | | damages on account
of such injury or death to the employee, and | 3 | | out of any amount recovered
the employer shall pay over to the | 4 | | injured employee or his personal
representatives all sums | 5 | | collected from such other person by judgment or
otherwise in | 6 | | excess of the amount of such compensation paid or to be paid
| 7 | | under this Act, including amounts paid or to be paid pursuant | 8 | | to paragraph
(a) of Section 8 of this Act, and costs, | 9 | | attorney's fees and reasonable
expenses as may be incurred by | 10 | | such employer in making such collection or
in enforcing such | 11 | | liability.
| 12 | | (Source: P.A. 79-79.)
| 13 | | (820 ILCS 305/21) (from Ch. 48, par. 138.21)
| 14 | | Sec. 21.
No payment, claim, award or decision under this | 15 | | Act shall be
assignable or subject to any lien, attachment or | 16 | | garnishment, or be held
liable in any way for any lien, debt, | 17 | | penalty or damages, except : (1) the beneficiary
or | 18 | | beneficiaries of a deceased employee who was a member or | 19 | | annuitant under
Article 14 of the "Illinois Pension Code" may | 20 | | assign any benefits payable
under this Act to the State | 21 | | Employees' Retirement System ; and (2) a medical provider may | 22 | | claim a lien under the Health Care Services Lien Act . The
| 23 | | compensation allowed by any award or decision of the Commission | 24 | | shall be
entitled to a preference over the unsecured debts of | 25 | | the employer, wages
excepted, contracted after the date of the |
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| 1 | | injury to an employee. A
decision or award of the Commission | 2 | | against an employer for compensation
under this Act, or a | 3 | | written agreement by an employer to pay such
compensation | 4 | | shall, upon the filing of a certified copy of the decision
or | 5 | | said agreement, as the case may be, with the recorder of the
| 6 | | county, constitute a lien upon all property of the employer | 7 | | within the
county, paramount to all other claims or liens, | 8 | | except mortgages, trust
deeds, or for wages or taxes. Such | 9 | | liens may be enforced in the manner
provided for the | 10 | | foreclosure of mortgages under the laws of this State.
| 11 | | (Source: P.A. 83-358.)
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