LienHospital Liens
Section § 3045.1
If someone is injured in an accident or because of someone else's negligence and the injury is not covered by certain work-related laws, hospitals in California that provide emergency or ongoing medical care can claim part of any damages paid to the injured person. This claim, known as a lien, covers the hospital's reasonable and necessary costs for treating the injured person. The lien can be applied to money the injured person recovers from a lawsuit or settlement, or if they pass away, the money their heirs or representatives recover.
Section § 3045.2
Basically, this law means that if you have a legal claim for damages and you're going to receive money because of it, there is a lien on that money no matter how you get it, whether through winning a lawsuit, settling the case, or coming to some kind of agreement.
Section § 3045.3
This law explains that a hospital can place a lien, which is a legal claim for payment, only if they send a detailed written notice to everyone who might be responsible for paying for an injured person's medical costs. This includes the person's name, accident date, hospital details, and charges. Before any compensation is paid to the injured person, the notice must be sent by registered mail. Hospitals must also notify any known insurance companies that might cover the responsible individual or group's liability. If the hospital asks, those responsible must disclose their insurance provider's information to the hospital.
Section § 3045.4
If someone owes money to a hospital for treating an injured person, they must pay the hospital before paying the injured person or their representatives, especially if they have been officially notified about the hospital's lien. The law states that up to 50% of any money from a settlement, judgment, or agreement should go to satisfying the hospital's claim before anyone else gets paid. If this isn't done, whoever makes the payment can be held responsible for covering the hospital's lien amount.
Section § 3045.5
If a hospital pays an injured person or their representatives, the hospital can claim its right to that money by suing the payer within one year from the payment date, as long as they notified the payer beforehand about their claim.
Section § 3045.6
This law section states that the rules in this chapter don't apply to lawsuits or claims against transportation companies that are controlled by the Public Utilities Commission or the Interstate Commerce Commission.