California law limiting dialysis providers' profits voided by US appeals court
Airfind news item
By Jonathan Stempel
Published on April 7, 2026.
A federal appeals court has overturned a California law that limited dialysis providers' profits from patients who receive health insurance premium assistance from nonprofit charities. The 9th U.S. Circuit Court of Appeals ruled in favor of Fresenius (FREG.DE) and DaVita, as well as the American Kidney Fund, who receive most of their funding from these providers. The law, known as Assembly Bill 290, was designed to address rising health care costs. The court found three of the law's provisions unconstitutional: a cap on the rate at which providers who donate to charities can be reimbursed by insurers, a requirement that charities offering premium assistance disclose their patients to insurers, and a prohibition on charities from conditioning assistance on various patient eligibility.
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