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38-27-101. Lien for hospital care - definition.

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(1) Before a lien is created, every hospital duly licensed by the department of public health and environment, pursuant to part 1 of article 3 of title 25, C.R.S., which furnishes services to any person injured as the result of the negligence or other wrongful acts of another person and not covered by the provisions of the Workers Compensation Act of Colorado, articles 40 to 47 of title 8, C.R.S., shall submit all reasonable and necessary charges for hospital care or other services for payment to the property and casualty insurer and the primary medical payer of benefits available to and identified by or on behalf of the injured person, in the same manner as used by the hospital for patients who are not injured as the result of the negligence or wrongful acts of another person, to the extent permitted by state and federal law.

(2) If no payers of benefits are identified for the injured person due to lack of insurance, a lien may be created.

(3) If a hospital is notified of a payer of benefits after it creates a lien, the hospital shall make good-faith attempts to submit reasonable and necessary charges for hospital care or other services to the identified payer in the same manner as used by the hospital for patients who are not injured as the result of the negligence or wrongful acts of another person.

(4) After a hospital satisfies the requirements of this section, and subject to this article, the hospital shall have a lien for all reasonable and necessary charges for hospital care upon the net amount payable to the injured person or to his or her heirs, assigns, or legal representatives out of the total amount of any recovery or sum had or collected, or to be collected, whether by judgment, settlement, or compromise, by the person or his or her heirs or legal representatives as damages on account of the injuries.

(5) Nothing in this section authorizes a hospital to collect or attempt to collect money from a person as prohibited by section 8-42-101 (4), 8-43-207 (1)(o), or 10-16-705 (3), C.R.S.

(6) Nothing in this section changes any obligation of the hospital or its agents under the Colorado Medical Assistance Act, articles 4 to 6 of title 25.5, C.R.S.

(7) An injured person who is subject to a lien in violation of this section may bring an action in a district court to recover two times the amount of the lien attempted to be asserted.

(8) The lien of attorneys- and counselors-at-law created by section 13-93-114 has precedence over and is senior to the lien created under this section. This article 27 does not apply to any hospital charges incurred after the date of any such judgment, settlement, or compromise.

(9) For purposes of this section, payer of benefits means:

(a) An insurer;

(b) A health maintenance organization;

(c) A health benefit plan;

(d) A preferred provider organization;

(e) An employee benefit plan;

(f) A program of medical assistance under the Colorado Medical Assistance Act, articles 4 to 6 of title 25.5, C.R.S.;

(g) The childrens basic health plan, article 8 of title 25.5, C.R.S.;

(h) Any other insurance policy or plan; or

(i) Any other benefit available as a result of a contract entered into and paid for by or on behalf of an injured person.

History

History.
Source: L. 67: P. 880, 1.C.R.S. 1963: 86-8-1. L. 90: Entire section amended, p. 574, 72, effective July 1. L. 94: Entire section amended, p. 2805, 577, effective July 1. L. 2015: Entire section amended, (SB 15-265), ch. 260, p. 981, 1, effective August 5. L. 2017: (8) amended, (SB 17-227), ch. 192, p. 705, 6, effective August 9.