Assembly passes SB 623 to cap certain medical-lien recoveries and tighten rideshare safety rules

The Assembly unanimously passed SB 623 on May 7, a bill that reforms the medical-lien market for certain rideshare (TNC) accident cases and adds safety and accountability measures for drivers and companies.

Assemblymember Pappen, who presented the bill, said SB 623 strives to protect patients from overcharging by lien-based medical providers, to safeguard access to care and to add safety protocols for TNC drivers and passengers. For accidents occurring on or after January 2027, the bill limits recovery for lien-based medical providers to no more than 70% of the Fair Health database amount for the same service in that geographic area; amounts above that threshold are void as to the plaintiff. The bill also requires standardized itemization of lien bills, restricts recovery when liens are sold (allowing only the face amount paid for a lien to be recovered), and prohibits attorneys from referring clients to providers in which they have an interest or receiving kickbacks or fee splits tied to such referrals.

On the transportation side, SB 623 requires initial and annual background checks for rideshare drivers, adds certain crimes (including violations of restraining orders related to child abuse) to disqualifying offenses, and creates an option for women riders to request women drivers (and vice versa).

Assemblymembers Berner and Kalra praised the compromise and said the bill provides a balanced approach to protecting victims while curbing abusive practices. The clerk recorded the vote as 67–0 in favor; the bill will be transmitted to the Senate.