Peters & Milam Insurance Services


Blog Content by Peters & Milam Insurance Services | Santa Barbara Health Insurance, Santa Barbara Health Care, Santa Barbara Life Insurance, Santa Barbara Medical Insurance, COBRA, Insurance Quotes, Small Business Healthcare, Covered California Broker



We exist to educate our clients on the latest in heath care reform. Our hope is to present updates in fresh, bite-sized and easy to understand terms that leave you feeling empowered and equipped to better navigate the health care world. Whether you are insured through your business or as an individual, our blogs are here to help! 


California Assembly Bill 72

California Assembly Bill (AB) 72 – Member Cost Sharing for out of network services

Effective July 1, 2017 insured members will be protected from “surprise or balance” bills from out of network doctors when receiving non-emergency care at an in-network facility. A common instance of this is when an insured schedules a surgery with a network surgeon at a network surgery center or hospital and a non-contracted anesthesiologist shows up moments before the surgery. This historically has left the patient responsible for 100% of the anesthesiologist’s charges in excess of the contracted rate. In 2015 Consumers Union found this type of billing occurred 1 in 4 times!

This law applies to plans approved by the California Department of insurance and the Department of Managed Health Care. This represents virtually all plans sold in the individual and small group market in the State of California.  One warning: the law allows non-network providers to bill you out of network rates, but only if you voluntarily sign a form at least 24 hours BEFORE you receive care.

More than ever consumers need to examine each claim statement they receive. If you see an amount in excess of the allowed charges, do NOT automatically pay it. And for SURE do not pay a bill from an out of network provider until you received an Explanation of Benefits from your insurance company.  Unless you signed the above release, or there is some other extenuating circumstance, you most likely are NOT responsible to pay the excess amount. Given this is a brand new law we have no experience with disputing improperly billed claims. A logical first step is to contact your insurance company and explain the issue. If this does not resolve the issue be sure and call our office.