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County of Los Angeles
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New Consumer Laws 2009

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MEDICAL INSURANCE – “BALANCE BILLING” PROHIBITED TO HFP AND AIMS RECIPIENTS

SB 697, Insurance Code 12693.55, 12698.26

The Healthy Families Program (HFP) and the Access for Infants and Mothers Program (AIM) provide low-cost health, vision, and dental insurance to uninsured children of low-income families. AIM also provides low-cost health insurance for low-income pregnant women and their newborn infants.

Present law prohibits "balance billing." This means that a medical provider that has a contract with a health plan cannot seek additional money from the patient for services covered by the plan.

Under present law, however, it was unclear whether balance billing covered HFP and AIM recipients. This new law makes it clear that they are covered. It requires a provider who is given proof of a patient's enrollment in either plan to charge only the health plan.

May be reprinted for non-commercial use if a credit line is included acknowledging the County of Los Angeles Department of Consumer Affairs.

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For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
Web site: dca.lacounty.gov