New Jersey's Lien Law

The Lien Law calls for a lien to be placed on the current and future assets of persons who are admitted to a charitable institution maintained in whole or in part by state or county funds, meaning a state or county psychiatric hospital. The law makes consumers, spouses, parents under 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 consequences 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 with no resulting lien. Those affected by the law should be aware of a provision that allows for the lien to be reduced or discharged.

Not only is the law blatantly discriminatory, but it makes it nearly impossible for consumers to return to society: the lien tarnishes their credit, which can prevent consumers from obtaining an apartment lease or a car loan -- necessities for former patients who wish to live independently and work. The current legislation status of New Jersey's Lien Law is available at http://www.mhanj.org/Advocacy/lien.htm.
 

 


 


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