Lawsuit filed over California dialysis clinic law on costs

SANTA ANA, Calif. (AP) — A federal lawsuit has been filed over a California law that aims to prevent increased billing costs at dialysis clinics.

The lawsuit filed Friday in Santa Ana, California, by two nonprofits and two patients asks the court to declare the law unconstitutional.

The lawsuit says the law will end an American Kidney Fund program that covers insurance premiums for low-income patients with kidney disease and helps reduce these patients’ medical costs.

The program is funded by dialysis clinics.

California passed the law in an effort to deter clinics from encouraging patients to enroll in health plans that give them higher reimbursement rates.

It came after a ballot measure to cap dialysis clinics’ profits failed in 2018.

A message seeking comment was left at the state Attorney General’s office.