Hurt in an Uber or Lyft Crash in California After January 1, 2027? What SB 623 Changes for Your Medical Bills

A new California law will change how medical bills are handled in many rideshare and delivery crash claims. Senate Bill 623 was approved by the Governor and filed with the Secretary of State on June 25, 2026, as Chapter 17 of the Statutes of 2026. Its main rule applies to automobile accidents that happen on or after January 1, 2027.

In short: if you are hurt in a crash on or after January 1, 2027, and your claim is against a rideshare or delivery network company, its subsidiary, or an app-based driver, SB 623 limits how much you can recover for past medical treatment you received from a “lien-based provider,” meaning a provider who treated you in exchange for a lien on your future settlement or judgment rather than billing your health insurance or a government program. The limit is tied to the 70th percentile of billed charges in a commercial database. The law does not cap your other damages, and it does not apply to crashes before 2027.

If you were hurt in a rideshare or delivery crash anywhere in California, Win Attorneys handles rideshare and delivery accidents statewide. Seek medical care first, even if you feel fine.

Talk to us at (562) 296-5380 or reach out through our contact page to discuss your situation. Office: 17291 Irvine Blvd., Suite 210, Tustin, CA 92780.

Why This Law Passed

SB 623 grew out of a deal. According to the Senate Judiciary Committee’s background paper for its June 23, 2026 informational hearing, the bill implements a negotiated agreement between the Consumer Attorneys of California and Uber Technologies, Inc., involving two qualified ballot initiatives. The paper states that if the Legislature approved the bill, the proponents of both initiatives agreed to withdraw them, as the Elections Code allows. The Governor signed the bill on June 25, 2026.

The result is a law that touches three areas: medical damages in app-company crash claims (new Civil Code section 3333.9), driver background checks (Public Utilities Code section 5445.2), and an option for women passengers and drivers to request matches with women (new Public Utilities Code section 5451). This guide focuses on the medical bill changes, because those affect injured people most directly.

Who the New Medical Bill Rule Covers

The new section applies to a civil case, claim, action, or arbitration against:

A network company, which Business and Professions Code section 7463 defines as a transportation network company, such as a ride hail app, or a delivery network company, meaning a business with an online platform for on-demand delivery;
Its subsidiary; or
An app-based driver, as defined in the same section, which covers certain rideshare drivers and delivery couriers who work through those platforms.

The statute does not name any company. Uber and Lyft are the best known transportation network companies, and the rule also reaches delivery app companies and their couriers when they meet the definitions.

Three conditions must line up:

The claim is against one of those parties.
The crash is an automobile accident that occurred on or after January 1, 2027.
You received medical treatment from a lien-based provider.

That means an ordinary crash between two private drivers, with no app company or app-based driver as a party, is not covered by this section. It also means the date of the crash matters more than the date you file. The law says it does not apply to medical services rendered, liens created, receivables assigned, or contractual rights arising before January 1, 2027.

For background on the insurance that usually stands behind a rideshare trip, see our guide to rideshare UM and UIM coverage under SB 371.

What Counts as a Lien-Based Provider

Under the statute, a lien-based provider is, in general terms, a health care provider who treats you and gets paid later through a lien or similar right against your recovery. The definition specifically leaves out care paid through health insurance or government coverage, and it leaves out hospital liens under California’s Hospital Lien Act (Civil Code sections 3045.1 to 3045.6).

The law’s definition of “medical lien” also leaves out reimbursement rights held by private health insurers, ERISA plans, workers’ compensation, Medicare, Medi-Cal, and TRICARE. In plain terms, the new cap is aimed at treatment arranged on a lien basis, not at the ordinary bills your health plan pays.

The Cap on Past Medical Bills

The core rule is in subdivision (b). For services by a lien-based provider, the most a plaintiff can recover for that medical expense is the 70th percentile of FAIR Health, Inc.’s billed charges, or the 70th percentile of a comparable commercially recognized billed charges database, for the same or similar service in the same geographic area at the time of service. The statute adds that no plaintiff may recover past medical expense damages above that amount.

Several related rules travel with the cap:

No recovery above the actual bill. You cannot recover more than the provider actually billed.
Excess is void. Any amount a lien-based provider bills above the cap is void and unenforceable, and the statute says no person or entity may collect or seek payment of that excess.
The jury does not see the higher numbers. Billed charges or lien amounts above the recoverable amount cannot be presented to the trier of fact, and the section itself cannot be referenced at trial.
Itemized bills. Bills must be itemized with standard medical billing codes (CPT, HCPCS, and ICD), and the statute provides a 30-day period to cure a deficient bill.
A narrow exception. Before trial, a court may allow recovery above the cap only if the plaintiff shows by clear and convincing evidence, supported by expert testimony, that the treatment was exceptionally rare or highly specialized and no reasonably comparable provider was available. If that motion is denied, the opposing party recovers its reasonable attorney’s fees and costs for opposing it.

The law also says it does not change existing law except as to recovery of past medical expenses from lien-based providers, and as the section otherwise provides. Whether and how it affects claims for future medical care is a question the text does not answer directly, so expect that issue to be argued. The law also states that it does not abrogate the collateral source rule.

Sold Liens and New Disclosure Rules

Some medical providers sell their liens to finance companies. SB 623 addresses that practice:

If a lien, receivable, or right to payment has been sold or transferred, the recoverable medical damages cannot exceed the total consideration paid or payable to acquire it.
Agreements to sell or transfer a lien, and the price, are discoverable, and must be disclosed within the time the statute sets and before any settlement.
A lien sale or transfer that was not disclosed cannot be asserted against a defendant, insurer, settlement, judgment, or settlement proceeds.

The law also makes referral, ownership, and financing relationships between lien-based providers and lawyers discoverable. On request, a provider must give a declaration under penalty of perjury stating whether the patient was referred by a lawyer and the approximate number of referrals from that lawyer or firm over the prior 24 months.

New Limits on Lawyers

SB 623 also regulates lawyer conduct in these cases. Among other things, the Legislative Counsel’s digest says the law makes it unlawful for a plaintiff’s lawyer to refer a client to a health care provider in which the lawyer or an immediate family member has a direct ownership interest, to split fees or receive certain compensation tied to lien-based treatment, or to pay for referrals of clients to lien-based providers. If anyone ever pressures you to see a specific clinic, you are free to ask why, and you can choose your own doctor.

What Does Not Change

Crashes before 2027. The new section applies to accidents on or after January 1, 2027.
Non-app crashes. It applies only to claims against network companies, their subsidiaries, or app-based drivers.
Other damages. The cap concerns past medical expenses from lien-based providers. Lost wages, pain and suffering, and other damages are not capped by this section.
Your right to medical care. Nothing in the law limits your right to get treatment. It changes how certain bills are valued in a claim.
Deadlines. The general deadline to file a personal injury lawsuit in California remains two years under Code of Civil Procedure section 335.1, with exceptions.

Practical Steps After a Rideshare or Delivery Crash in 2027

These are general points, not a plan for any specific case. Talk with a lawyer and your medical providers about your own situation.

Get medical care right away. Go to an emergency room or urgent care if you are hurt. Emergency care is never something to delay because of paperwork.
Use your health insurance when you can. The statute’s definition of lien-based provider leaves out care under health insurance or government coverage. Using your health plan may keep your bills outside the new cap, though your plan may have its own reimbursement rights.
Ask before you sign a lien. If a provider asks you to sign a lien or assignment, ask for a copy, ask whether the provider plans to sell it, and ask for itemized bills with billing codes. Keep every document.
Check your MedPay. Medical payments coverage on your own auto policy, if you carry it, may help pay early bills regardless of fault. Read your policy and ask your insurer what it covers.
Keep records. Save the trip screenshots, receipts, photos, the police report number, witness contacts, and every medical bill and explanation of benefits.
Watch for 2027 timing. If your crash was in 2026, the old rules apply to it. If it was on or after January 1, 2027, the new rules may apply.

For more on what can happen after a serious rideshare incident, see our post on the Orange County Uber freeway passenger abandonment verdict. If a driverless ride is involved, our guide on who pays after a San Diego Waymo robotaxi crash covers the different rules that may apply.

Our hub page lays out the rideshare insurance tiers by trip phase and how a robotaxi claim differs.

The Other Two Changes in SB 623

Background checks. The law adds offenses that disqualify a person from driving for a transportation network company and requires the criminal background check before a driver’s account is activated and once a year after that.

Women-to-women matching. Notwithstanding the Unruh Civil Rights Act, transportation network companies and charter-party carriers may let women passengers and women drivers indicate a preference to be matched with each other, and may facilitate those matches. The law makes this provision apply retroactively.

How Win Attorneys Can Help

Every rideshare or delivery crash claim turns on its facts: who was involved, which insurance applies, when the crash happened, and how your treatment was paid for. We can review those details, explain how SB 623 may apply, and help you organize medical bills and records. Our team speaks Spanish and Vietnamese.

SB 623 Medical Bill FAQs

When does SB 623 start applying to rideshare crash claims?

The medical bill rules in Civil Code section 3333.9 apply to automobile accidents occurring on or after January 1, 2027. They do not apply to medical services, liens, or receivables arising before that date.

Does SB 623 apply to every car accident in California?

No. It applies to claims against a network company, its subsidiary, or an app-based driver, as defined in Business and Professions Code section 7463. A crash between two private drivers is not covered by this section.

What is a lien-based provider?

In general, a health care provider who treats you in exchange for a lien or right to be paid from your recovery. The law leaves out care under health insurance or government coverage and hospital liens under the Hospital Lien Act.

How much can I recover for lien-based medical bills under SB 623?

For past medical expenses from a lien-based provider, recovery is limited to the 70th percentile of FAIR Health billed charges, or a comparable database, for the same service in the area, and never more than the amount billed. A court may allow more only in narrow cases.

Does SB 623 cap pain and suffering or lost wages?

No. The section says it changes existing law only as to recovery for past medical expenses from lien-based providers, and as otherwise stated in the section. Other damages are not capped by it.

What happens if my medical lien was sold?

If a lien was sold or transferred, recoverable medical damages cannot exceed what the buyer paid or owes for it. The sale must be disclosed, and an undisclosed sale cannot be asserted against a settlement or judgment.

Should I use my health insurance after a rideshare crash in 2027?

That is a personal decision to make with your providers and a lawyer. The law’s definition of lien-based provider excludes care under health insurance or government coverage, so using your plan may keep those bills outside the cap.

Disclaimer

This page is general information for educational purposes. It is not legal advice and does not create an attorney-client relationship. Statutory details are summarized from the chaptered text of SB 623 (Chapter 17, Statutes of 2026) and the Senate Judiciary Committee’s June 23, 2026 background paper, and may be interpreted by courts. No fault is assigned to anyone. Outcomes depend on the facts of each matter. Seek medical care for injuries. Consult a licensed California attorney about your situation.