On June 25, 2026, Uber and the Consumer Attorneys of California (“CAOC”) withdrew their competing ballot initiatives and reached a landmark compromise that fundamentally reshapes the legal landscape governing medical services provided on a lien basis in rideshare personal injury cases. Effective January 1, 2027, amendments to California Civil Code section 3333.9 will impose significant new obligations on medical providers, alter how medical expenses are calculated and presented, and create new disclosure requirements. This article provides a practical overview of those changes and concrete guidance for medical providers that accept liens.
Limited to Rideshare Cases
The amendments to Civil Code section 3333.9 apply exclusively to rideshare cases — claims arising from incidents involving transportation network companies such as Uber and Lyft. The overwhelming majority of motor vehicle collision cases will be entirely unaffected.
Equally important, the law is not retroactive. Medical services rendered and liens created prior to January 1, 2027 remain governed by existing law. Civil Code section 3333.9(a). Providers and attorneys handling cases that straddle the effective date should ensure that lien agreements are executed as soon as possible in order to avoid these changes.
When the new law does apply, however, its impact will be substantial.
Medical Billing: A New Ceiling on Recoverable Charges
One of the most significant changes involves the cap on recoverable medical expenses. Under the amended statute, medical treatment costs in rideshare cases will be limited to the 70th percentile of FAIR Health, Inc.’s billed charges database, or the 70th percentile of a comparable commercially recognized billed charges database for the same or similar service in the applicable geographic area at the time the service was rendered. Civil Code section 3333.9(b)(1).
This benchmark functions as a hard ceiling — not a negotiating starting point — on what a medical provider may claim in a rideshare case. Providers whose customary charges significantly exceed this threshold will face immediate reductions in their recoverable amounts.
In addition, providers will be required to submit itemized medical bills using standard health care billing and coding practices, including CPT codes. Providers who do not already bill with this level of specificity will need to update their administrative processes before January 1, 2027.
FAIR Health’s publicly accessible database is available at https://www.fairhealthconsumer.org and can be used to benchmark anticipated reimbursements by service type and geographic area.
Does It Make Sense to Accept Rideshare Cases?
For chiropractors and similar providers whose customary charges are already near or below the 70th percentile threshold, the ceiling may not represent a dramatic reduction. In fact, anchoring charges to this recognized benchmark could give providers a defensible, data-supported basis for their bills and potentially reducing the size and frequency of reduction requests. For providers whose customary charges materially exceed this benchmark, they may have to make a business decision as to whether to accept rideshare cases and accept a significantly lower payment.
Mandatory Referral Disclosure
The amended statute also introduces a new disclosure obligation with significant trial implications. Upon request, lien-based medical providers will be required to provide a signed declaration stating whether the plaintiff was referred by a law firm, and disclosing the approximate number of patients referred by that law firm during the preceding 24 months. Civil Code section 3333.9(d)(2). Medical providers need to be prepared to be examined regarding these declarations at deposition and trial, especially if a particular law firm is referring a significant volume of cases.
Practical Recommendations
The following steps should be taken before January 1, 2027:
- Assess your position under the new billing cap: Run your current fee schedule against FAIR Health benchmarks for your most commonly billed services and geographic area. Determine whether accepting rideshare liens remains economically viable for your practice.
- Implement intake screening: In every new personal injury case, ask the referring attorney — at intake — whether a rideshare entity is involved. This single question will determine whether the new statutory framework applies and allow your practice to make an informed decision about whether to accept the case on a lien basis.
- Build a referral tracking system: The mandatory declaration requirement means you must be able to accurately report referral sources and volumes on a rolling 24-month basis. If your practice does not currently track this data, establish a system now.
- Update your billing practices: Ensure that all billing staff are using CPT codes and standard itemized billing formats for rideshare cases by the effective date.
Reach Out To A California Rideshare Accident Lawyer Today For More Information
The compromise reached between Uber and the CAOC represents one of the most significant structural changes to rideshare personal injury litigation in California in recent years. While the new law’s scope is limited to rideshare cases and is prospective only, the changes it introduces — particularly the billing cap, itemization requirements, and referral disclosure obligations — demand immediate attention from medical providers and personal injury attorneys alike.
Preparation before January 1, 2027 is not optional. The providers and attorneys who adapt their practices now will be better positioned to serve their clients, protect their recovery rights, and avoid being caught flat-footed when the new law takes effect.
This article is intended for informational purposes only and does not constitute legal advice. Medical providers and attorneys with questions about how these changes apply to their specific circumstances should consult qualified legal counsel.