AAPS vs. Brown – Protecting Physicians and Patients from AB 72

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AAPS v. Brown, 2:16-cv-02441-MCE-EFB

Update 8/25/2017: AAPS files Memorandum of Points and Authorities in Opposition to the Motion for Judgment on the Pleadings – http://aapsonline.org/judicial/aaps-v-brown-08-24-2017.pdf

Read Complaint: http://www.aapsonline.org/judicial/aaps-v-brown-10-13-2016.pdf

Dear AAPS Members and Friends:

A horrendous anti-physician bill was just signed into law by California Governor Jerry Brown, and we are suing to stop this bad idea before it spreads nationwide. The bill imposes wage-and-price controls against physicians, and allows insurance companies to set the rates for all physicians, even those not under contract with the insurance companies.

This is a devastating blow to the practice of private medicine, unless we stop it in court.

Falsely promoted as a fix for “surprise medical bills,” this new law (AB 72) hands control over to insurance bureaucrats to essentially decide what out-of-network physicians will be paid for life-saving medical care. Independent doctors, already under attack from all directions, could be forced to shut their doors. Patients are having a hard enough time as it is finding doctors and this scheme will only exacerbate the physician shortage.

While other medical associations have already waved the white flag of surrender and are refusing to challenge this law, AAPS and its members will never back down when it comes to standing up for physicians and patients. Today we filed suit in federal court to stop this law.

We must be straightforward with you: this battle is not going to be easy and it’s not going to be cheap. We are going to need all hands on deck to beat back this harmful legislation before it roars across the country.

Your tax-deductible contribution TODAY to our American Health Legal Foundation will go directly to fund this crucial fight.

Please visit http://AmericanHealthLegalFoundation.org to pitch in to make sure we have the resources to effectively pursue this lawsuit.

Other states have passed balanced billing bans, that limit patients’ out of pocket costs, but none are as brazen and this new California law. It basically prohibits billing the insurance company more than what it wants to pay! If unchecked, other states will soon be following California’s lead to the detriment of doctors and patients.

Here’s an excerpt from the AAPS lawsuit, AAPS vs. Jerry Brown, filed in United State District Court for the Eastern District of California:

The Act [AB 72] violates the U.S. and California Constitutions in at least three ways.

First, the Act violates the Due Process Clauses of the U.S. and California Constitutions by delegating rate-setting authority to private insurance companies, with respect to physicians who are not under any contract with the insurance companies. In addition, the Act is unconstitutional under the Due Process Clauses by requiring arbitration for the out-of-network physicians on their reimbursements, thereby denying them their due process rights in court on their claims.

Second, the Act violates the Takings Clauses of the U.S. and California Constitutions because the Act empowers private insurance companies to deprive out-of-network physicians of the market value for their services, and arbitrarily denies them just compensation for their labor.

Third, the Act violates the Equal Protection Clauses of the U.S. and California Constitutions by having a disparate impact on minority patients for whom the availability of medical care will sharply decline as out-of-network physicians are coerced by the Act to withdraw services from predominantly minority communities.

To read the entire initial complaint CLICK HERE. We are asking for an immediate injunction to stop this unconstitutional law from going into effect.

Thank you to all our loyal members and friends for making this action possible! Your continued support today will amplify the force we can apply to this pivotal case.


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