Government Healthcare Policy, Business and Technology

Calif. Assembly passes bill to cap dialysis reimbursement

Modern Healthcare: In a major blow to dialysis giants DaVita Healthcare Partners and Fresenius Medical Care, the California State Assembly and Senate passed a bill to crack down on third-party premium assistance for dialysis and cap providers' reimbursement to Medicare rates if they don't comply with the mandate.

The legislation now has a good chance of getting signed into law by Democratic Gov. Jerry Brown. It would serve as a landmark victory for insurers and unions in the long-brewing battle with the dialysis industry. The bill takes aim at the American Kidney Fund, a not-for-profit that subsidizes individual market premiums for dialysis patients who are covered by Medicare and Medicaid.

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