Under the new law, patients can't be charged more than their in-network cost.
"So the consumer will know what that charge is going to be when they call that ambulance," said Katie Van Deynze, a policy and legislative advocate for Health Access California.
For those who don't have insurance, the bill also caps what consumers can be charged at the Medi-Cal or Medicare rate.
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Last year, if you called 911 an ambulance would show up, but consumers didn't necessarily know if that ambulance was going to be in-network or out-of-network. Out-of-network costs tend to be much higher, often tied with unexpected fees.
According to Van Deynze, this new law also has protections for consumers who are sent to collections by ensuring there will not be adverse credit for unpaid ambulance bills posted for a year. It also prohibits wage garnishment, which requires employers to withhold a portion of an employee's wage until the balance is paid.
"More transparency means there's some more peace of mind," said Van Deynze.
This new law will help consumers stuck with exorbitant, unexpected ambulance bills.
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For Frank Chan and his wife, it was a $2,255 bill that showed up after an emergency room visit led to an unnecessary ambulance ride 100 yards away.
"I was shocked," Chan told ABC7.
His wife Amber, drove herself to the ER, was admitted, but then transferred to the mental health inpatient clinic - which happened to be the building next door to the ER.
"It was so unfair," said Chan.
The Chan's were stuck sorting this out for five days as both the hospital and the ambulance company went back and forth on who's responsible to pay it. Chan was later reimbursed after the ABC7 News I-Team got involved.
According to a legislative analysis, people with commercial health insurance stand to save approximately $44.5 million dollars in direct charges for ambulance rides.
This story is part of a groundbreaking multi-newsroom collaboration that is focused on increasing transparency and accountability in California.