Two Orange County kidney failure patients and patient advocacy groups sued the state Monday, asking a federal judge in Los Angeles to strike down a recently signed state law that aims to restrict excessive profits for dialysis companies.
In signing AB 290, which takes effect on Jan. 1, Gov. Gavin Newsom said the law will remove financial incentives to steer dialysis patients to certain providers for premium assistance. In addition to lowering the reimbursement rates to Medicare levels, the bill requires health plans to accept premium payments from charities on behalf of patients, who must be informed of their rights ahead of time.
The complaint, filed in Los Angeles federal court against California Attorney General Xavier Becerra, state Insurance Commissioner Ricardo Lara and others, alleges the bill “will do irreversible harm to dialysis and transplant patients who need charitable assistance to help them pay for health care,” according to the American Kidney Fund, which is among the plaintiffs.
The lawsuit, Doe vs. Becerra, alleges that AB 290 is both unconstitutional and interferes with federal health care laws.
“Without AKF financial support, (some dialysis) patients cannot afford their insurance; without coverage, they lose access to health care and the treatments that keep them alive,” said LaVarne Burton, president and chief executive officer of AKF.
“California policymakers have removed their safety net and let special interests win out over the needs of this underserved population,” Burton said. “AKF remains committed to our promise to do everything we can to protect patients; with the lawsuit, we continue to fight this unconscionable effort by policymakers.”
The plaintiffs are seeking a preliminary ruling before AB 290 takes effect.