NAMI NEW JERSEY ADVOCACY
The Lien Law


ACTING GOVERNOR SIGNS "LIEN LAW" AT MENTAL HEALTH SUMMIT

Acting Governor Richard J. Codey on March 24, 2005 signed legislation that wipes out existing liens for individuals who have been hospitalized at a state or county psychiatric hospital and prohibits future liens.

"As of today, people who cannot afford their stay at a state or county hospital, will no longer have liens hanging over their heads when they are released," said Codey. "We are wiping out a draconian law that penalized our most vulnerable citizens and made their recovery that much harder."

This law ends the discriminatory practice in New Jersey of placing automatic liens for the full cost of care on individuals hospitalized at state or county psychiatric hospitals and certain members of their families. Under the provisions of the law which takes effect September 10, 2005:

All past and current liens would be extinguished (This takes effect immediately).
Patients in state or county psychiatric hospitals would be charged on their ability to pay using a sliding fee scale to be developed by the Department of Human Services similar to the Charity Care fee scale.
Relatives, other than the parents of children under the age of 18, would no longer be financially responsible for such hospitalizations.
The spouses of patients would be entitled to a protected, spousal share of community assets and income. This share would be excluded in calculating a patient's financial liability.
The Department of Human services will develop a process by which individuals with liens can apply to have them discharged by the county in which they are recorded.
A new, more liberal compromise provision will be adopted by the Department of Human Services.

NAMI NEW JERSEY commends Governor Codey for signing this landmark piece of mental health legislation. The bill's signing is a testimonial to the many NAMI NEW JERSEY advocates who have fought long and hard to pass this legislation.

For additional information contact Phil Lubitz at advocacy@naminj.org or (732) 940-0991.

 Interim Lien Law Procedures

 PL 2005, CHAPTER 55 (The Lien Law - Key Provisions)

 Full text of the Lien Law, PL 2005, c.55 http://www.njleg.state.nj.us/2004/Bills/PL05/55_.HTM


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