On September 23, 2016, Governor Brown signed Assembly Bill 72, California’s law prohibiting surprise medical bills from out-of-network providers operating at in-network facilities. The new law takes effect for plans renewed on or after July 1, 2017 and prohibits balance billing of individuals for non-emergency services. The law establishes a reimbursement formula for out-of-network providers and requires any balance billing issues to be resolved between the carrier and service provider. The law does not apply to Medical plans, self-funded plans, fully insured plans written outside of California, or individuals that are not insured. Balance billing related to Emergency services is already prohibited in California.
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