Governor Newsom Signs “Lindalee’s Law” (AB 1770) Landmark Legislation Balances Playing Field in Forced Medical Arbitration Agreements

Sacramento, CA – The Patient Equity Coalition today announced that “Lindalee’s Law” (AB 1770), a bill authored by Assembly Assistant Majority Leader Robert Garcia (D-Rancho Cucamonga), has been signed into law by Governor Newsom. The legislation protects patients who are forced into healthcare arbitration after an HMO medical provider makes a serious error.

“I want to thank Governor Newsom for honoring the memory of my late wife Lindalee and standing on the side of patients seeking a fair shake in what are often horrendous circumstances,” said Stephen Martinez, founder of the Patient Equity Coalition. “When Lindalee and I were forced into arbitration, we had no chance because the process was rigged against us and in favor of the large HMOs. With Governor Newsom’s signature, we’ve taken a significant step toward balancing the playing field for patients. If Lindalee were still here to see this, I have no doubt she would be beaming with pride at what we have accomplished.”

Currently, health consumers who have disputes with large private HMOs have been forced into an arbitration system where arbitrators are often financially dependent on repeat business from the very health care plans they are meant to be impartially judging. This tilted the scales in favor of the private health plans. Families who have experienced medical harm often endure multi-year delays and unethical litigation tactics with no recourse and no real advocate to turn to.

AB 1770 will improve patient protection by making clear the Attorney General has oversight authority of  health care service plans to ensure they comply with the California Arbitration Act. 

“We need to do more to advocate for health consumers and Lindalee’s Law represents a significant step in that fight,” said Assembly Assistant Majority Leader Robert Garcia (D - Rancho Cucamonga). “In cases where there is true, preventable error resulting in injury or death, health consumers forced into medical arbitration are left to seek justice or restitution in a system that is tilted against them and in favor of the large HMOs. AB 1770 helps to balance that playing field by making clear the Attorney General oversees health care service plans and can ensure they comply with the California Arbitration Act. That creates an incentive for more even handed treatment on the part of arbitrators and the health plans themselves.”

Lindalee’s Law (AB 1770) mandates that the Attorney General oversees health care service plans to ensure compliance with the California Arbitration Act and requires that all arbitration claims be conducted pursuant to the code of Civil Procedure, which closes loopholes that allow plans to bypass standard safeguards. By empowering the Department of Justice, the bill specifically targets financial bias and unethical practices to restore neutrality in the medical arbitration process.

AB 1770 goes into effect January 1, 2027.

For more information on Lindalee’s Law: https://leginfo.legislature.ca.gov/faces/billAnalysisClient.xhtml?bill_id=202520260AB1770

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For more information on the Patient Equity Coalition visit: https://www.patientequitycoalition.org