For years, Californians who accurately called 911 for emergencies were financially devastated by massive out-of-network ambulance bills since ground transit was excluded from the federal No Surprises Act. California AB 716 dramatically changes this landscape.
The End of Surprise Billing
Effective January 1, 2024, AB 716 fundamentally bans "balance billing" for ground ambulance services for state-regulated health plans. If an out-of-network ground ambulance transports you, the law restricts your maximum out-of-pocket financial responsibility to exactly what you would have paid an in-network provider (your standard deductible, copay, or coinsurance). The ambulance company is now legally barred from attempting to collect any further inflated balance from you.
The Scope of Protection
This law extends protection to millions, however, it explicitly only covers patients on state-regulated commercial insurance plans. Important exclusions exist:
- Self-funded Employer Plans (ERISA): If your large employer self-funds its health insurance—which relies on federal oversight rather than state—you unfortunately are generally immune from AB 716's protections, leaving you exposed to out-of-network rates.
- Medicare/Medicaid: These federal programs uniquely already ban balance billing by decree, thus requiring no extra state-level legislation.
Debt Collection Limits
The law also establishes harsh new protections regarding medical debt. It forbids an ambulance company from sending unpaid bills to collections, garnishing wages, or placing a lien on a patient's property for at least 12 months following the initial bill, giving the patient substantial time to negotiate or dispute the claim with their insurer.