A political advocacy group for physicians has filed a lawsuit against a new California law designed to protect consumers from unexpected out-of-network medical bills.
The Association of American Physicians and Surgeons, in the lawsuit filed late last week in the U.S. District Court for the Eastern District of California in Sacramento, asked the court to block the law.
“This bill basically empowers private insurance companies to set prices for physicians and other caregivers who are not even in their network,” said Andrew Schlafly, general counsel for the group. “It basically gives the insurance companies the power of government.”
The legislation, Assembly Bill 72, authored by Rob Bonta, D-Alameda, removes patients from what is essentially a dispute between insurers and health care providers who don’t contract with insurers.