Section 1373.19 Of Article 5. Standards From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 5.
1373.19
. Any health care service plan that includes a term that
requires the parties to submit to binding arbitration shall, for
those cases or disputes for which the total amount of damages claimed
is two hundred thousand dollars ($200,000) or less, provide for
selection by the parties of a single neutral arbitrator who shall
have no jurisdiction to award more than two hundred thousand dollars
($200,000). This provision shall not be subject to waiver, except
that nothing in this section shall prevent the parties to an
arbitration from agreeing in writing, after a case or dispute has
arisen and a request for arbitration has been submitted, to use a
tripartite arbitration panel that includes two party-appointed
arbitrators or a panel of three neutral arbitrators, or another
multiple arbitrator system mutually agreeable to the parties. The
agreement shall clearly indicate, in boldface type, that "A case or
dispute subject to binding arbitration has arisen between the parties
and we mutually agree to waive the requirement that cases or
disputes for which the total amount of damages claimed is two hundred
thousand dollars ($200,000) or less be adjudicated by a single
neutral arbitrator." If the parties agree to waive the requirement to
use a single neutral arbitrator, the enrollee or subscriber shall
have three business days to rescind the agreement. If the agreement
is also signed by counsel of the enrollee or subscriber, the
agreement shall be immediately binding and may not be rescinded. If
the parties are unable to agree on the selection of a neutral
arbitrator, and the plan does not use a professional dispute
resolution organization independent of the plan that has a procedure
for a rapid selection or default appointment of a neutral arbitrator,
the method provided in Section 1281.6 of the Code of Civil Procedure
may be utilized.