California Health Providers Lien Bill Vetoed

California Health Providers Lien Bill Vetoed

By Matt Brady

NU Online News Service, Sept. 23, 3:44 p.m. EDT?California's Republican Gov. Arnold Schwarzenegger vetoed legislation this week that would have allowed health care providers to file a lien in lawsuits brought by Medi-Cal patients injured by a third party.[@@]

Medi-Cal is a joint state federal program providing medical treatment.

Sponsored by state Sen. Martha Escutia, D-Whittier, the measure, Senate Bill 494, would have allowed the health care providers to recover fees from the third party significantly higher than those established by the Medi-Cal fee-for-service rate agreements.

"In other words, the bill would have forced consumers to subsidize the Medi-Cal program by imposing inflated insurance costs," said Sam Sorich, president of the Association of California Insurance Companies.

In a message to the state Senate, Gov. Schwarzenegger explained his decision to veto the bill, relating it to the reforms of the workers' compensation system passed in April.

"Earlier this year, we struggled to control the growing costs of medical care within the workers' compensation system," he said. "We fought to limit the litigious nature encouraged by a system that benefited special interests at the expense of California workers. If enacted, SB 494 will encourage the same abuse we worked to correct in the workers' compensation system within the auto insurance market."

Additionally, Gov. Schwarzenegger said that "? perhaps most troubling is the fact that the inflated cost to the insurance system for these overcharges will be borne by consumers, increasing the likelihood of growing the number of uninsured in this state."