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California SB 623: What Changes for Lien-Based Providers in Rideshare Accident Cases

Signed June 2026, SB 623 caps lien-based medical charges in rideshare accident cases from 2027, voids the excess, requires coded bills and makes lien sales and referral relationships discoverable. What practices should do now.

Mousa Kadaei

Mousa Kadaei

Product & Growth Manager, EMR · 6 min read ·

Illustration of a bar chart with a 70th percentile cap line, labeled SB 623 California 2026.

Updated November 11, 2026. California's SB 623, the Fair Medical Billing & Rideshare Safety Act, was signed on June 25, 2026. For rideshare and app-based driver accident cases arising on or after January 1, 2027, it caps what can be recovered for lien-based medical treatment and voids charges above the cap. It also requires coded, itemized bills, forces disclosure of lien sales, and opens provider referral relationships to discovery.

The law came out of a deal between Uber and the Consumer Attorneys of California that kept two competing measures off the November 2026 ballot. This post covers what it changes for medical practices that treat personal injury patients on a lien.

This is general information, not legal advice. It's based on the legislative analysis and published summaries of the enacted bill. Read the chaptered text and talk to a California attorney about how it applies to your practice.

Which cases does SB 623 cover?

SB 623's medical billing rules apply to civil cases, claims and arbitrations against a network company, its subsidiary or an app-based driver, arising from an automobile accident on or after January 1, 2027, where the injured person was treated by a lien-based provider. In practice, that means accidents involving rideshare and app-based drivers, such as Uber and Lyft drivers.

  • Not every car accident. A crash between two private drivers is not covered by these provisions.
  • Not past treatment. Medical services rendered, liens created and receivables assigned before January 1, 2027 are excluded.
  • "Network company" is defined by reference to California Business and Professions Code section 7463, which covers transportation network companies and delivery network companies.

What does SB 623 change for lien-based providers?

ChangeWhat it means for the practice
Cap on recoverable chargesPast medical expenses for lien-based services are generally capped at the 70th percentile of FAIR Health billed charges, or a comparable database, for the same or similar service in the area. Recovery also can't exceed what was actually billed.
Charges above the cap are voidAmounts above the maximum are unenforceable, and no one may collect the excess, including from the patient.
Narrow exceptionA court can allow more before trial, on clear and convincing evidence with expert testimony, for exceptionally rare or highly specialized treatment with no comparable alternative.
Coded, itemized billsMedical expenses are recoverable only with bills itemized at the procedure-code level (CPT, HCPCS and ICD). After a written deficiency notice, there are 30 days to cure.
Lien sales disclosedIf a lien or receivable is transferred, the agreement and the price paid must be disclosed within 30 days and before settlement. An undisclosed transfer can't be enforced. A buyer can recover no more than what it paid.
Referral relationships are discoverableFinancing, referral, ownership and compensation arrangements between providers and law firms can be explored in discovery. On request, a provider must declare under penalty of perjury whether the plaintiff's counsel referred the patient, and roughly how many patients that attorney or firm referred in the prior 24 months.
No pre-agreed reductionsLien-based providers may not agree, before treatment, to reduce a lien.
Attorney restrictionsAttorneys may not refer clients to providers they (or immediate family) directly own, accept kickbacks or referral payments tied to lien-based treatment, or charge extra fees for reducing a client's medical lien.

What should practices do before January 1, 2027?

  1. Flag rideshare cases at intake. Ask whether the accident involved a rideshare or app-based delivery driver, and record it on the case. Those cases follow different rules from 2027.
  2. Make every bill coded and itemized. CPT, HCPCS and ICD codes at the procedure level, for every visit. A bill that can't be itemized on request may not be recoverable.
  3. Know where your charges sit against the benchmark. Review your lien-based charges for common services against the 70th-percentile benchmark, since anything above it will be void in covered cases.
  4. Record the referral source on every case. You may have to state under penalty of perjury whether a firm referred the patient and how many patients it referred in the past 24 months. Answer that from your records, not from memory.
  5. Review any lien sale or factoring arrangements. For covered cases, transfers must be disclosed within 30 days and the buyer's recovery is capped at the price paid, which changes the economics of selling receivables.
  6. Remove any pre-treatment reduction promises from lien forms and firm agreements used for covered cases.
  7. Talk to your California attorney about your lien forms, factoring contracts and referral relationships before 2027.

Why does this matter outside rideshare cases?

SB 623 is limited to rideshare and app-based driver claims, but it follows a wider trend. Florida's 2023 reform already requires disclosure of letters of protection, itemized and coded bills, referral relationships and factoring sales before medical expenses can be claimed (Florida Statutes § 768.0427). Similar "paid versus billed" and disclosure proposals have appeared in other states.

The common thread: a lien-based practice's coding, itemization and referral records are becoming part of the case. Practices that already keep them clean will adapt fastest. See the guides to medical liens and letters of protection for the basics.

How practices keep these records in Ambula

In Ambula's personal injury EMR, the referring attorney is attached to each case from intake. Lien and consent forms are signed digitally and stay on the case. Every visit and procedure adds itemized charges to the case ledger, and CMS-1500 and UB-04 claim forms are generated from the same record. Intake forms are built in Ambula's form builder, so a practice can add a question such as "Did the accident involve a rideshare or delivery driver?" to its own intake.

Lien management keeps lien balances and settlement payments on the case, and the Lawyer Portal keeps a history of what each firm was sent and opened.

Frequently asked questions

Does SB 623 apply to all California car accident cases?

No. Its medical billing provisions apply to claims against rideshare and other network companies, their subsidiaries and app-based drivers, for accidents on or after January 1, 2027, where the injured person treated with a lien-based provider. Other car accident cases are not covered by these provisions.

What is the SB 623 cap on lien-based medical bills?

Recoverable past medical expenses for lien-based services are generally capped at the 70th percentile of FAIR Health billed charges, or a comparable database, for the same or similar service in the geographic area. Recovery can't exceed the amount billed, and a court can allow more only in narrow cases.

Can a provider bill the patient for charges above the SB 623 cap?

No. In covered cases, amounts above the statutory maximum are void and unenforceable, and no person or entity may collect the excess. That includes collecting it from the patient.

Does SB 623 affect treatment given before 2027?

No. The law excludes medical services rendered, liens created and receivables assigned before January 1, 2027.

What does SB 623 mean for selling or factoring medical liens?

In covered cases, a lien transfer and the price paid must be disclosed within 30 days and before settlement, an undisclosed transfer can't be enforced, and the buyer can recover no more than it paid. That reduces what a factoring company can collect on covered receivables.

This content is for informational purposes only and reflects the law as described in published analyses on the date above. Laws governing medical liens and personal injury damages vary by state and change over time. Consult a licensed California attorney for guidance specific to your practice.

Sources

Mousa Kadaei

Written by

Mousa Kadaei

Product & Growth Manager, EMR

Mousa is a product and growth manager at Ambula. He designs products around what doctors need and writes about healthcare technology.

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