Bill > AB877

This bill requires the Department of Managed Health Care, the Department of Insurance, and the State Department of Health Care Services to each send a letter to the chief financial officers of health care service plans, health insurers, and Medi-Cal managed care plans that provide substance use disorder treatment coverage in California. The letters will clarify that substance use disorder treatment in residential facilities is predominantly nonmedical, with only rare medical exceptions. The bill broadly defines "residential facilities" to include family homes, group care facilities, alcohol or drug treatment programs, and recovery residences that provide 24-hour nonmedical care. The letters will instruct these plans about billing requirements for nonmedical treatments and outline the limited circumstances where medical treatment might be appropriate in these facilities. Each department is required to consult with the Department of Social Services when preparing the letters, which must be sent by October 1, 2026. These provisions will automatically be repealed on January 1, 2027, making this a temporary measure aimed at providing clarity and guidance about the nature of substance use disorder treatment in residential settings.

Health and Social Services

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB877