Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice. Personal injury law is highly fact-specific, and every case should be evaluated individually.
The Swanson Law Group has recovered over $250 million for injured clients throughout California, and founding attorney Benjamin D. Swanson, Esq., has spent his career fighting insurance companies that try to shortchange the injured. That experience is especially relevant now, as a new law is set to change how certain rideshare accident cases may be valued.
Senate Bill 623 (SB 623), known as the Fair Medical Billing and Rideshare Safety Act, is designed to limit how much an injured person may recover for medical treatment received on a lien when the claim involves Uber, Lyft, or another transportation network company. The law applies to covered rideshare accidents occurring on or after January 1, 2027, and changes how certain lien-based medical expenses may be calculated using a national billing database.
If you were hurt in a rideshare accident in San Jose, Westlake Village, or elsewhere in California, understanding how SB 623 could affect your situation, before it takes effect, may help protect the value of your claim.
What Is a Medical Lien, and Why Do Injured People Use One?
A medical lien is generally an agreement that allows an injured person to receive treatment without paying the provider up front. Rather than billing the patient directly, the provider agrees to seek payment from a future settlement or jury award once the case resolves.
People turn to lien-based care for several reasons, which may include:
- Not having health insurance, or having coverage that doesn't extend to the specialists needed
- Difficulty affording the out-of-pocket costs of surgery, physical therapy, or diagnostic imaging while a case is pending
- Injuries that require ongoing treatment, which can take months or years to fully resolve
- A preference for continuity of care with providers experienced in treating accident injuries
The Swanson Law Group has built relationships with physicians and specialists who may provide care on a lien basis, so clients can often begin treatment without waiting for a case to settle. This approach has long been part of the firm's support for injured clients, and lien-based care generally remains available under SB 623.
What the law is designed to change is how much of that lien-based bill may later be recoverable in a covered rideshare claim, and the specific outcome will depend on the facts of each case.
What SB 623 Is Designed to Change: The 70th Percentile Cap
SB 623 is written to cap the amount an injured person may recover for lien-based medical services in a covered rideshare claim at the 70th percentile of billed charges reported by FAIR Health, Inc., or a comparable commercially recognized billed-charges database, for the same or similar service in the same geographic area.
According to the California Legislative Information bill text, a plaintiff generally may not recover past medical expense damages above that benchmark in a covered claim, and evidence of billed amounts exceeding it is generally not permitted to be introduced.
FAIR Health is a national database that tracks what providers typically bill for specific procedures across different regions. The 70th percentile benchmark generally works by looking at what similar providers charge for the same service in the same area, then using that figure as a reference point for recoverable damages, rather than relying solely on an individual provider's bill.
Applying the benchmark generally involves a few key factors:
- The specific medical service or procedure billed by the lien-based provider
- The geographic area where the treatment was provided
- What comparable providers typically charge for that same service in that area, according to FAIR Health or a similar recognized database
- Whether a database other than FAIR Health was used, since the law allows for a comparable commercially recognized alternative
As an illustration, if a lien-based provider bills $20,000 for a procedure but the 70th percentile for that same procedure in the relevant geographic area is $13,000, only $13,000 may generally be presented as recoverable past medical expense damages in a covered rideshare claim.
This does not necessarily mean the provider is barred from billing the higher amount; rather, that higher amount generally cannot be used to calculate what the at-fault party owes.
A few practical points generally follow from this structure:
- The provider's original bill is not automatically disqualified; only the amount usable as evidence of damages may be limited
- The cap applies to past medical expenses tied to lien-based providers, not to a claim's damages as a whole
- The specific figure at play can shift based on which database and geographic data set is used
- How this plays out in practice may still depend on the specific service, provider, and geographic data available at the time
Does SB 623 Apply to Every California Car Accident?
Generally, no. SB 623 is written to apply only to a narrow category of claims, and it's important not to assume it affects every injury case.
The law is intended to apply specifically to civil claims and arbitrations against a transportation network company, its subsidiary, or an app-based driver arising from an automobile accident occurring on or after January 1, 2027, in which the injured person received treatment from a lien-based provider.
This means SB 623 is not designed to apply to most California car accidents. A collision involving two personal vehicles, a commercial truck, a motorcycle, a pedestrian, or a bicyclist, with no rideshare company involved, would generally fall outside this law.
According to reporting from Tech Times, the law's medical-expense provisions are targeted at rideshare-connected claims. They are not intended to extend to the broader universe of California motor vehicle cases.
Whether a claim generally falls within SB 623's scope may depend on factors such as:
- Whether the at-fault driver was logged into a rideshare app or on an active trip at the time of the accident
- Whether the claim is against a transportation network company, its subsidiary, or an app-based driver specifically
- Whether the accident occurred on or after January 1, 2027
- Whether the injured person received treatment from a lien-based provider
If you were injured in a rideshare vehicle, hit by an app-based driver, or hurt as a pedestrian or cyclist by a driver working for Uber or Lyft, your claim may fall within the law's scope, but whether it actually applies depends entirely on the specific facts of your case.
What SB 623 Does Not Appear to Change
SB 623 is written to target a specific aspect of a rideshare injury claim, and, on its face, it leaves most of the recovery process untouched.
Based on the law as written, it does not appear to reduce or eliminate the following:
- Future medical expenses tied to ongoing or anticipated care
- Lost wages and lost earning capacity
- Pain and suffering and other non-economic damages
- Medical expenses paid through health insurance, Medi-Cal, Medicare, or workers' compensation
- The ability to negotiate a settlement or take a case to trial
SB 623 also does not appear to cap attorney contingency fees. The Swanson Law Group continues to represent clients on a contingency fee basis, meaning clients generally owe no legal fees unless the firm wins.
The law adds new disclosure requirements regarding medical liens, including situations in which a lien has been sold or transferred to a third party. Still, it is not designed to prevent injured people from accessing lien-based care as their cases move forward. As with any new statute, how courts apply these provisions may evolve.
Why You Should Talk to a Rideshare Accident Lawyer Sooner Than Later
Timing may matter more than usual under SB 623. Decisions made early in a rideshare accident case, including which provider treats an injury and how that treatment is billed, could affect how much of that bill is ultimately recoverable once the law takes effect. Waiting to involve an attorney may mean losing the opportunity to plan around these new rules from the outset.
An experienced rideshare accident attorney can also help gather evidence before it becomes harder to obtain. Witnesses can become difficult to locate, memories fade, and vehicle data can be lost or overwritten if a claim isn't pursued promptly.
The Swanson Law Group works to secure this evidence early and to coordinate medical care through its provider relationships, so clients are not left guessing about their treatment options or legal rights.
Because SB 623 is written to apply only to specific accident dates and defendants, confirming whether it applies to a particular case requires a careful, individualized review of the facts. An attorney familiar with both the prior and new rules can explain what a case could be worth and how to pursue the remaining categories of damages.
Frequently Asked Questions
Does SB 623 apply if my rideshare accident happened before January 1, 2027? Generally, no. The law's medical-expense provisions are written to apply only to covered accidents occurring on or after that date. Accidents before then would generally continue to be handled under existing California law, though the specific facts of a case always matter.
Does SB 623 cap how much my attorney can charge? Based on the law as written, no. SB 623 does not appear to cap contingency fees. The Swanson Law Group continues to represent clients on a contingency fee basis, meaning clients generally pay no legal fees unless the firm wins.
Does SB 623 apply to all car accidents in California? Generally, no. It's written to apply only to covered claims against a transportation network company, its subsidiary, or an app-based driver. Non-rideshare car accidents, truck accidents, and other injury claims would not typically be affected by this particular law.
Can I still get treatment on a medical lien after SB 623 takes effect? In most cases, yes. SB 623 does not appear to prohibit lien-based medical care itself. It's designed to change how much of a lien-based bill may later be recoverable as damages in a covered rideshare claim, not whether that care can be provided in the first place.
What happens to the portion of my medical bill above the 70th-percentile cap? In a covered rideshare claim, amounts above the cap would generally not be recoverable as damages or admissible as evidence of the claim's value. However, outcomes can vary based on the specific service and provider involved.
Do I still need a lawyer if the cap might reduce part of my recovery? Generally, yes. Pain and suffering, lost wages, lost earning capacity, and future medical costs are not affected by the cap as written. A lawyer can help evaluate what categories of damages may still be fully available in your specific situation.
We’re Here to Help You Understand Your Rideshare Accident Claim
SB 623 adds a new layer of complexity to rideshare accident claims in California, and navigating it effectively requires attorneys who stay current with the law as it evolves.
The Swanson Law Group has spent years building relationships with physicians who provide lien-based care and fighting insurance companies to pursue full and fair compensation for injured clients. If you or a loved one was hurt in an Uber, Lyft, or other rideshare accident, reach out for a free case consultation to discuss how these new rules may apply to your specific circumstances.
Additional Disclaimer: The information on this page is provided for general educational purposes only and does not constitute legal advice. Every case is different, the law surrounding SB 623 is still developing, and outcomes depend on the specific facts involved. Past results do not guarantee future outcomes.
