NAMI NEW JERSEY

ADVOCACY NETWORK


UPDATE

May 17, 2001


BILL INTRODUCED TO REFORM NEW JERSEY LIEN LAW

 

On May 3, 2001, comprehensive legislation (S2341) was introduced in the State Senate by Diane Allen to reform the discriminatory practice of placing liens on the patients of New Jersey’s state and county psychiatric hospitals and their families.

Among the most archaic laws remaining in New Jersey is the Lien Law 30:4-80.1. This law calls for a lien to be placed on the current and future assets of persons who are admitted to a State or County psychiatric hospital. The law makes consumers, spouses, patents under age 55 or the parents of minor children, and the children of institutionalized parents responsible for the cost of maintaining the individual in these hospitals. It is only families with a member who has a mental illness and to a lesser extent those with a developmental disability who suffer from the onerous consequence of this law. For any other physical illness, New Jersey has developed a system of charity care that provides for free or reduced fee medical care on a sliding scale with no resulting lien.

In particular, this law injures those individuals whose insurance plans are not covered by the mental health parity provisions of NJ law, and those who are covered only by Medicaid because Medicaid does not cover treatment in state or county psychiatric hospitals.

NAMI NEW JERSEY advocates changes in the Lien Law in the following respects:

Under no situation should parents or children be held financially liable for their adult relatives.
A patient of a state or county psychiatric hospital should not have a lifelong debt brought on by financial liability greater than their ability to pay. The Commissioner of the Department of Human Services should be charged with adopting a sliding scale similar to those adopted in the Charity Care regulations.
The Commissioner should likewise adopt regulations concerning the liability of a spouse based on income, exempted assets and the status of the marriage at the time of the spouse’s hospitalization.
Revised statues should provide for the review of prior liens. Relief from these liens should be provided in a manner consistent with the sliding scale regulations to be adopted by the Commissioner.

ACTION NEEDED:

It is urgent that advocates contact their state senators and ask them to co-sponsor this critical piece of legislation. Another letter can be sent to your assemblymen asking them to submit a similar bill in the Assembly. A handwritten, personal, letter is more effective than a typed one or an e-mail.

NAMI NJ has drafted the following letter that can be used as a sample

Senator’s name

Address

Dear Senator ,

I am writing to ask for your help in reforming the 1918 law that places liens on the patients of state and county psychiatric hospitals as well as on their families. It is only at these hospitals for a mental illness that relatives are held liable for their adult family member’s treatment and the ability to pay of the patient is not considered. A person with any other illness or with a mental illness, but hospitalized at a community hospital is only subject to charges in accordance with New Jersey’s system of charity care. As the family member of a person with a serious mental illness, I can tell you that these liens place people in a financial hole from which they can never hope to recover and only add to the burden of persons with a mental illness and their families who are trying to overcome the devastation of a serious mental illness.

Recently a bill, S 2341, which would bring comprehensive reform to this anachronistic lien statute was introduced. I am asking that you support this legislation by becoming a co-sponsor. This is legislation that would make an appreciable difference in my life and in that of my family.

I hope that I can count on you as my senator to support this important legislation. If you wish to speak with me, I can be reached at the phone number and address below. Thank you for your consideration.

Sincerely,”

Your name

Address

You can find the name and address of you legislators at http://www.njleg.state.nj.us/html/legsearc.htm or by calling the NJ Office of Legislative Services 1 (800) 792-8630

Please forward a copy of your correspondence to:

Phil Lubitz, NAMI NEW JERSEY, 1562 Route 130, North Brunswick, NJ 08902

Please distribute this Alert to other advocates for improved mental health services in New Jersey. If you would like to receive NAMI NEW JERSEY Advocacy Alerts by email, contact Phil Lubitz, the Advocacy Network Coordinator at plubitz@optonline.net or by phone (732) 940-0991.


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NAMI NEW JERSEY: http://www.naminj.org

 

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