72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3169
 
                         House Bill 3362
 
Sponsored by COMMITTEE ON JUDICIARY (at the request of Oregon
  Medical Association)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Provides that if insurance coverage is not sufficient to
satisfy all medical services liens, insurer must prorate amounts
available under limits of insurance and pay hospitals or
physicians in proportion to amount due each for services
rendered.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to medical services lien; amending ORS 87.555; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 87.555 is amended to read:
  87.555. (1) Except as otherwise provided by law, whenever any
person receives hospitalization or medical treatment on account
of any injury, and the person, or the personal representative of
the person after the death of the person, claims damages from the
person causing the injury, then the hospital or any physician
licensed under ORS chapter 677 who treats the injured person in
the hospital or who provides medical services shall have a lien
upon any sum awarded the injured person or the personal
representative of the person by judgment or award or obtained by
a settlement or compromise to the extent of the amount due the
hospital and the physician for the reasonable value of such
medical treatment rendered prior to the date of judgment, award,
settlement or compromise. However, no such lien shall be valid
against anyone coming under the Workers' Compensation Act.
  (2) When the injured person receiving hospitalization or
medical care from a physician is the beneficiary of an insurance
policy, including a policy that provides personal injury
protection coverage or similar no-fault medical insurance but
excluding a health insurance policy, that provides for payment of
such hospitalization and medical care, both the hospital and
physician shall have liens upon the amount payable under the
insurance policy. If a hospital or physician has properly
perfected a lien pursuant to ORS 87.565 (2), the insurer
obligated to make payment shall pay the sum due under the
insurance policy directly to the hospital and physician in the
amount due each for services rendered, and such payment shall
constitute a release of the insurer making the payment to the
extent of the payment.
  (3)   { - When there are insufficient funds - }  { +  If the
insurance coverage is not sufficient + } to satisfy in full the
liens of all hospitals and physicians claiming a lien created by
this section, the insurer making the payment shall prorate the
 { - available funds without regard to the sequence of the filing
of the notice of lien by the hospitals or physicians - }  { +
amounts available under the limits of the insurance + }, and pay
the hospitals or physicians in proportion to the amount due each
for services rendered { + , without regard to the sequence of the
filing of the notice of lien by the hospitals or physicians + }.
  SECTION 2.  { + This 2003 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2003 Act takes effect on its
passage. + }
                         ----------