Health Law & Business News

Dialysis Industry Dealt Setback by California Lawmakers

Sept. 11, 2019, 1:31 AM

California legislation targeting practices by dialysis providers including DaVita Inc. and Fresenius Medical Care North America is heading to the governor.

The labor- and insurance industry-backed Assembly Bill 290 would prohibit third parties, such as dialysis providers, from steering or directing dialysis patients to private insurance. Private insurance reimburses providers more than public programs such as Medi-Cal, California’s Medicaid program, and the dialysis centers also profit from patients’ out-of-pocket charges, a Senate analysis said. The bill also would bar enrollees being hit with balance billing, the practice of charging patients the amount above which insurance doesn’t pay.

“This bill will...

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