BILL AS INTRODUCED S.79
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1 S.79
2 Introduced by Senators Vyhovsky, Baruth, Bray, Clarkson, Gulick, Hardy,
3 Harrison, Hashim, MacDonald, McCormack, Perchlik, Ram
4 Hinsdale, Starr, Watson, White and Wrenner
5 Referred to Committee on
6 Date:
7 Subject: Health; hospitals; health insurance; hospital liens
8 Statement of purpose of bill as introduced: This bill proposes to prohibit a
9 hospital from having a lien on a patient’s recovery for damages based on
10 injuries suffered in an accident if the patient is covered by Medicare, Medicaid,
11 or a health insurance plan under which the hospital is a participating provider.
12 The bill would require the hospital to pay a pro rata share of the legal and
13 administrative expenses incurred in obtaining the damages and would limit the
14 amount of a hospital lien to not more than 25 percent of the net amount
15 received by the patient.
16 An act relating to limitations on hospital liens VT LEG #366529 v.1
 BILL AS INTRODUCED S.79
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1 It is hereby enacted by the General Assembly of the State of Vermont:
2 Sec. 1. 18 V.S.A. § 2251 is amended to read:
3 § 2251. LIEN ESTABLISHED
4 (a) A hospital in Vermont, as defined in section 1801 of this title,
5 furnishing medical or other service, including charges of private duty nurses, to
6 a patient injured by reason of an accident not covered by the Workers’
7 Compensation Act, 21 V.S.A. § 601 et seq. chapter 9, shall have a lien upon
8 any recovery for damages to be received by the patient, or by his or her the
9 patient’s heirs or personal representatives in the case of his or her the patient’s
10 death, whether by judgment or by settlement or compromise after the date of
11 the services. This lien shall not attach to one-third of the recovery or $500.00,
12 whichever shall be the lesser, and in addition the lien shall be subordinate to an
13 attorney’s lien.
14 (b) Notwithstanding subsection (a) of this section, a hospital shall not have
15 a lien under this chapter if the patient has health insurance, including coverage
16 under Medicare, Medicaid, or a health plan issued by a health insurer, as
17 defined in section 9402 of this title, and the hospital has a contractual
18 agreement with that payer.
19 (c)(1) A hospital that recovers under this chapter shall be responsible for a
20 pro rata share of the legal and administrative expenses incurred in obtaining
21 the judgment, settlement, or compromise.
VT LEG #366529 v.1
 BILL AS INTRODUCED S.79
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1 (2) In no event shall the hospital lien exceed 25 percent of the net
2 judgment, settlement, or compromise received by the injured patient.
3 Sec. 2. EFFECTIVE DATE
4 This act shall take effect on July 1, 2023.
VT LEG #366529 v.1


Statutes affected:
As Introduced: 18-2251