Bill > AB2327

This bill, effective January 1, 2027, requires that Medi-Cal managed care plans operating as downstream fully or partially delegated subcontractors, meaning they take on some or all of the responsibilities of the main Medi-Cal managed care plan, must be paid actuarially sound rates. These rates must be developed using generally accepted actuarial principles and practices, ensuring fair compensation for the services provided. Failure by a Medi-Cal managed care plan to pay these subcontractors appropriately will be considered an unlawful and unfair business practice, and the subcontractor will have the right to enforce these payment requirements by filing a dispute with the State Department of Health Care Services. The department can implement these changes through various administrative means, such as letters and contract amendments, without needing to go through formal regulatory rulemaking.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2327