Health Care Services Lien Act and House Bill “HB 5823

Healthcare LegislationThough healthcare legislation and reform can be hard to keep up with, it is very important, as it directly effects HIS’ client’s bottom line. Following, are some important facts, and timelines of two legislative issues currently in progress. 

Health Care Services Lien Act

 First, is the Health Care Services Lien Act.  It was last heard by the Civil Law Committee on March 7th, 2012. The statutes amended include: 770 ILCS 23/30, 770 ILCS 23/45, and 770 ILCS 23/50 (new).  

The Health Care Services Lien Act provides four main things. It provides that:
  1. When a petition is filed by the injured person, the healthcare professional, or healthcare provider, that petition may be served upon the interested adverse parties by personal service, substitute service, or registered or certified mail. 

  2. If health insurance, or private or public benefits are available to pay a medical bill, the lien of a healthcare professional or health care provider is limited to the rates established by the private or public fund. 

  3. If a lien, claim, or subrogation claim arising out of the payment of medical expenses exists with respect to a claim for personal injuries or death and the claimant's recovery is diminished by comparative fault or the un-collectibility of the full claim for personal injuries or death resulting from limited liability insurance or any other cause, the lien or claim shall be diminished in the same proportion as the claimant's recovery is diminished. 

  4. The holder of the lien or claim shall bear a pro rata share of the claimant's attorney's fees and litigation expenses and shall be barred from pursuing any claim for the unpaid balance. 


Timeline of Actions: 

Health Care Lien Act





House Bill “HB 5823

The second legislation, currently in progress, that healthcare providers should be aware of is HB 5823.  Following, is part of an article that first appeared on the MGMA website as an update to the current proceedings of the House Bill “HB 5823.” Read the entire article here 


 “Unfortunately HB 5823 was passed in Committee and could get voted upon by the House. We would encourage you to keep the pressure on your legislators!

Current law protects the right of a physician to pursue collection of his or her reasonable charges for services provided to an injured person.  HB 5823 will repeal this right by limiting the amount of any lien to a reimbursement rate established by the injured party’s health insurance company, even though this insurance company is not responsible for payment of the claim.”

HIS will keep you updated on any additional information regarding the Health Care Services Lien Act and HB 5823. If you have any additional questions or concerns, feel free to contact us or leave a comment below.



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