AB 2427

  • California Assembly Bill
  • 2017-2018 Regular Session
  • Introduced in Assembly
  • Passed Assembly May 30, 2018
  • Passed Senate Aug 23, 2018
  • Governor

Medi-Cal: anticompetitive conduct.

Abstract

Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Existing law authorizes the Director of Health Care Services to contract, on a bid or nonbid basis, with any qualified individual, organization, or entity to provide services to, arrange for or case manage the care of Medi-Cal beneficiaries. Existing law authorizes the renewal of a contract if the provider continues to meet the requirements of the Medi-Cal program and the contract. Under existing law, failure to meet those requirements is cause for nonrenewal of the contract. Existing law authorizes the department to terminate or decline to renew a contract, in whole or in part, if the director determines that the action is necessary to protect the health of the beneficiaries or the funds appropriated to carry out the Medi-Cal program. Under existing law, one of the methods by which Medi-Cal services are provided is pursuant to contracts with various types of managed care plans. Existing law, commencing July 1, 2019, requires a Medi-Cal managed care plan to comply with a minimum 85% medical loss ratio. Existing law requires, effective for contract rating periods commencing on or after July 1, 2023, a Medi-Cal managed care plan to provide a remittance to the state if the ratio does not meet the minimum ratio of 85% for the corresponding reporting year. This bill would authorize the department to terminate a for-profit Medi-Cal managed care plan contract if the Attorney General determines that the Medi-Cal managed care plan engaged or engages in anticompetitive conduct or practices, as specified, or if the department determines that the Medi-Cal managed care plan has a pattern or practice of not complying with the medical loss ratio, as described above. The bill would specify that nonrenewal of a contract under these provisions would not qualify the applicant for an administrative hearing. The bill would apply these provisions only to new contracts, and renewals of existing contracts, executed on or after January 1, 2019.

Bill Sponsors (4)

Votes


Actions


Sep 21, 2018

Assembly

Vetoed by Governor.

Sep 05, 2018

California State Legislature

Enrolled and presented to the Governor at 3 p.m.

Aug 27, 2018

Assembly

Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 50. Noes 24. Page 6655.).

Aug 23, 2018

Assembly

In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 25 pursuant to Assembly Rule 77.

Senate

Read third time. Passed. Ordered to the Assembly. (Ayes 26. Noes 13. Page 5652.).

Aug 17, 2018

Senate

From committee: Do pass. (Ayes 5. Noes 2.) (August 16).

Senate

Read second time. Ordered to third reading.

Aug 06, 2018

Senate

In committee: Referred to APPR. suspense file.

  • Referral-Committee
APPR APPR. suspense file.

Jul 02, 2018

Senate

Read second time and amended. Re-referred to Com. on APPR.

  • Amendment-Passage
  • Reading-2
  • Referral-Committee
  • Reading-1
Com. on APPR.

Jun 28, 2018

Senate

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 2.) (June 27).

Jun 19, 2018

Senate

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HEALTH.

  • Amendment-Passage
  • Referral-Committee
  • Reading-2
  • Reading-1
  • Amendment-Introduction
Com. on HEALTH.

Jun 07, 2018

Senate

From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on HEALTH.

  • Amendment-Passage
  • Referral-Committee
  • Reading-2
  • Reading-1
  • Amendment-Introduction
Com. on HEALTH.

Senate

Referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

May 31, 2018

Senate

In Senate. Read first time. To Com. on RLS. for assignment.

May 30, 2018

Assembly

Read third time. Passed. Ordered to the Senate. (Ayes 50. Noes 23. Page 5554.)

May 29, 2018

Assembly

Read second time. Ordered to third reading.

May 25, 2018

Assembly

Read second time and amended. Ordered returned to second reading.

Assembly

From committee: Amend, and do pass as amended. (Ayes 12. Noes 4.) (May 25).

May 16, 2018

Assembly

In committee: Set, first hearing. Referred to APPR. suspense file.

  • Referral-Committee
APPR APPR. suspense file.

May 01, 2018

Assembly

Re-referred to Com. on APPR.

  • Referral-Committee
Com. on APPR.

Apr 30, 2018

Assembly

Read second time and amended.

Apr 26, 2018

Assembly

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 4.) (April 24).

Apr 02, 2018

Assembly

Re-referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Mar 23, 2018

Assembly

From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

Mar 22, 2018

Assembly

Referred to Com. on HEALTH.

  • Referral-Committee
Com. on HEALTH.

Feb 15, 2018

Assembly

From printer. May be heard in committee March 17.

Feb 14, 2018

Assembly

Read first time. To print.

Bill Text

Bill Text Versions Format
AB2427 HTML
02/14/18 - Introduced PDF
03/23/18 - Amended Assembly PDF
04/30/18 - Amended Assembly PDF
05/25/18 - Amended Assembly PDF
06/07/18 - Amended Senate PDF
06/19/18 - Amended Senate PDF
07/02/18 - Amended Senate PDF
08/29/18 - Enrolled PDF

Related Documents

Document Format
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Sources

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