Under the Act, insured individuals are only responsible for costs equal to what they would pay if they received the service from an in-network provider. Cal. Health & Safety Code § 1371.9(a)(1). Further, out-of-network providers are prohibited from billing or collecting any amount from the enrollee for their services except for the in-network cost-sharing amount.
As described in our August Alert, California’s new “No Surprise” billing law required the California’s Department of Managed Health Care(“DMHC”) and Department of Insurance (“DOI”) to develop dispute resolution processes for handling rate disputes between health plans and individual health professionals (“IHPs”), including physicians and other clinicians who are not contracted with their patients’ health plans or insurers but who practice at hospitals and other facilities that are contracted, i.e., “in network.” See Cal. Health & Safety Code §§ 1371.9(f)(3), 1371.30; Cal.
The insurers and the physicians work out payment for services through a voluntary, state-arranged dispute resolution process. The law only applies to PPO plans since Florida already prohibits surprise out-of-network physician bills for HMOs.California’s Surprise Billing Protection Law – AB-72On July 1, 2017, California’s surprise billing protection law at Cal. Health and Safety Code § 1371.9 (2016) and elsewhere (“AB-72”), takes effect in California. As a result, healthcare facilities in the Golden State are scrambling to address the many AB-72 issues that will emerge on July 1, 2017.
The insurers and the physicians work out payment for services through a voluntary, state-arranged dispute resolution process. The law only applies to PPO plans since Florida already prohibits surprise out-of-network physician bills for HMOs.California’s Surprise Billing Protection Law – AB-72 On July 1, 2017, California’s surprise billing protection law at Cal. Health and Safety Code § 1371.9 (2016) and elsewhere (“AB-72”), takes effect in California. As a result, healthcare facilities in the Golden State are scrambling to address the many AB-72 issues that will emerge on July 1, 2017.