Sec. 3 . (a) A person, a firm, a partnership, an association, a limited liability company, or a corporation maintaining a hospital in Indiana or a hospital owned, maintained, or operated by the state or a political subdivision has a lien for all reasonable and necessary charges for hospital care, treatment, and maintenance of a patient (including emergency ambulance services provided by the hospital and any amount designated as a copayment or deductible) upon any cause of action, suit, or claim accruing to the patient, or in the case of the patient's death, the patient's legal representative, because of the illness or injuries that:
(1) gave rise to the cause of action, suit, or claim; and
(2) necessitated the hospital care, treatment, and maintenance.
(b) The lien provided for in subsection (a):
(1) except as provided in subsection (c), applies to any amount obtained or recovered by the patient by settlement or compromise rendered or entered into by the patient or by the patient's legal representative;
(2) is subject and subordinate to any attorney's lien upon the claim or cause of action;
(3) is not applicable to a person covered by:
(A) the provisions of IC 22-3, the state worker's compensation laws;
(B) the provisions of 5 U.S.C. 8101 et seq., the federal worker's compensation laws;
(C) 45 U.S.C. 51 et seq., the federal liability act;
(E) the provisions of 42 U.S.C. 1395 et seq., the federal Medicare program;
(4) is not assignable; and
(A) first be reduced by the amount of any benefits to which the patient is entitled under the terms of any contract, health plan, or medical insurance; and
(B) reflect credits for all payments, contractual adjustments, write-offs, and any other benefit in favor of the patient;
after the hospital has made all reasonable efforts to pursue the insurance claims in cooperation with the patient.
(c) If a settlement or compromise that is subject to subsection (b)(1) is for an amount that would permit the patient to receive less than twenty percent (20%) of the full amount of the settlement or compromise if all the liens created under this chapter were paid in full, the liens must be reduced on a pro rata basis to the extent that will permit the patient to receive twenty percent (20%) of the full amount.
(d) A lien provided for in this chapter does not apply to a judgment, cause of action, suit, or claim accruing to the patient under:
(1) a policy of disability insurance; or
(2) automobile or homeowner's insurance that provides for medical payments.
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