Bill > AB2594

This bill extends and modifies a pilot program in California that allows approved healthcare providers to enter into risk-bearing arrangements with voluntary employees' beneficiary associations (VEBAs), which are organizations that provide benefits to their members. The program, originally authorized in southern California, will now be permitted throughout the state and its end date has been pushed back from December 31, 2030, to December 31, 2032. Additionally, the deadline for the Department of Managed Health Care to submit an interim report on the pilot program's findings to the Legislature has been moved from December 31, 2028, to January 1, 2029. The bill also adjusts the repeal date of these provisions from January 1, 2033, to January 1, 2031. The core purpose of the pilot program is to assess whether these risk-sharing models can effectively control healthcare costs and improve patient outcomes compared to the traditional fee-for-service payment model.

Budget and Finance, Health and Social Services

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2594