California axes dialysis payment caps

California's Democratic Gov. Jerry Brown vetoed a bill Sept. 30 aimed at restricting the financial assistance dialysis companies can offer patients, according to MarketWatch.

In his veto, Gov. Brown said Senate Bill 1156 "goes too far as it would permit health plans and insurers to refuse premium assistance payments and to choose which patients they will cover."

While the bill would have significantly affected the revenue of dialysis providers like DaVita and Fresenius Medical Care, it would have maximized how much companies are reimbursed for dialysis treatment. The bill's sponsor said this could have raised health insurance premiums.

DaVita's shares were up 3.5 percent on the news, while Fresenius was up 2.7 percent, according to MarketWatch.

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