On Sep. 6, CAL LEG issued bill extending health care pilot sunset date.
CAL LEG passed bill AB 2063 to extend sunset of pilot program under Department of managed health care (DMHC); amends Health, Safety Code CAL LEG 2-2.2-1-1343.3.
Bill Provisions
Under pilot programs in northern, southern CAL, approved providers may undertake risk-bearing arrangements with voluntary employees' beneficiary association (VEBA).
May utilize VEBA with enrollment of 100k lives; also with trust fund that is welfare plan, multiemployer plan with enrollment of 25k lives; for independent periods of time.
Existing law requires association or trust fund and participating health care providers to report to DMHC information regarding cost savings and clinical patient outcomes.
Compared to a fee-for-service payment model; requires DMHC to report those findings to Legislature by Jan. 1, 2027; existing law repeals these provisions on Jan. 1, 2028.
This bill would instead authorize the director to authorize one pilot program in southern California, under which providers approved by the department may undertake risk-bearing arrangements with a VEBA, if certain criteria are met.
The bill would extend that repeal date to January 1, 2030; would also extend authorized period for program to operate from Dec. 31, 2025 to Dec. 31, 2027.
Legislative History
On Feb. 1, 2024, bill was introduced in Assembly; on May 21, 2024, passed Assembly.
On May 22, 2024, bill was introduced in Senate; on Aug. 26, 2024, bill passed Senate.
On Aug. 26, 2024, amendment concurred; on Sep 5, 2024, enrolled, sent to Governor.
Effectiveness
DMHC authorized pilot program sunset date will be extended to Dec. 31, 2027.
If approved, bill takes effect on Jan. 1 of the year after bill enactment, Jan. 1, 2025
Sep. 28, 2024 CAL LEG Governor Approved
On Sep. 28, 2024, CAL LEG reported governor approved AB-2063 as Chapter 818.
Regulators
CAL LEG
Entity Types
Ins
Reference
Ch 818, 9/28/2024; Bill, AB2063, 9/6/2024; Citation: CAL LEG 2-2.2-1-1343.3;
