No on Proposition 8

Vote No on Proposition 8: Jeopardizes Access to Kidney Dialysis.

The CalChamber opposes arbitrary government price controls that do not account for the actual cost of care. Proposition 8 sets a dangerous precedent to apply arbitrary government price controls to other health care providers and businesses. Moreover, the measure could increase costs by shifting treatment from a dialysis clinic to more expensive venues, such as emergency rooms or hospitals. It also could jeopardize the financial viability of clinics, which could lead to closures, thereby reducing patient access to critical care.
The measure limits amounts outpatient kidney dialysis clinics may charge for patient care and imposes penalties for excessive charges.

Specifically, the measure:

  • Requires clinics, beginning in 2019, to provide rebates to commercial health insurers when total revenues exceed 115% of certain costs for direct patient care and treatment quality.
  • Outlines a process for legal challenges against the measure’s rebate provision as an unconstitutional taking of private property without due process or just compensation. If the courts rule in the clinic’s favor, the clinics have the burden to propose an alternative revenue cap.
  • Imposes a penalty of 5% on the amount of the rebates to the Department of Public Heath to implement and enforce laws governing chronic dialysis clinics.
  • Requires annual reports relative to the rebate provision that include the number of treatments provided, the amount of direct care and quality improvement costs, the amount of the revenue cap, the amount the revenues exceed the cap and the amount of rebates provided to payers.