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<ns0:Id>20250SB__053092CHP</ns0:Id>
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<ns0:ActionText>CHAPTERED</ns0:ActionText>
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<ns0:ActionText>APPROVED</ns0:ActionText>
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<ns0:ActionText>FILED</ns0:ActionText>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:ChapterNum>418</ns0:ChapterNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Richardson</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthor: Senator Weber Pierson)</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Richardson</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Weber Pierson</ns0:Name>
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<ns0:Title>An act to amend Sections 14197 and 14197.9 of the Welfare and Institutions Code, relating to Medi-Cal.</ns0:Title>
<ns0:RelatingClause>Medi-Cal</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Medi-Cal: time and distance standards.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>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, under fee-for-service or managed care delivery systems. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions.</html:p>
<html:p>Existing law establishes, until January 1, 2026, certain time and distance and appointment time standards for specified Medi-Cal managed care covered services, consistent with federal regulations relating to network adequacy standards, to ensure that those services are available and accessible to enrollees of Medi-Cal managed care plans in a timely manner, as specified.</html:p>
<html:p>This bill would extend the operation of those standards to January 1, 2029. The bill would
also require a managed care plan to ensure that each subcontractor network complies with certain appointment time standards unless already required to do so. The bill would require a plan to demonstrate to the department each subcontractor network’s compliance with time or distance and appointment time standards, as specified.</html:p>
<html:p>Existing law permits the department to authorize a managed care plan to use clinically appropriate video synchronous interaction, as defined, as a means of demonstrating compliance with the time or distance standards.</html:p>
<html:p>Under this bill, the use of telehealth providers to meet time or distance standards would not absolve the managed care
plan of responsibility to provide a beneficiary with access, including transportation, to in-person services if the beneficiary prefers. The bill would set forth other related provisions with regard to the use of telehealth.</html:p>
<html:p>Existing law permits the department, upon request of a managed care plan, to authorize alternative access standards for the time or distance standards under certain conditions.</html:p>
<html:p>This bill
would, effective for contract periods commencing on or after January 1, 2027, require the department to consider the sufficiency of payment rates offered by the Medi-Cal managed care plan to the provider type or for the service type when evaluating requests for the utilization of alternative access standards.</html:p>
<html:p>The bill would require a Medi-Cal managed care plan that does not meet time or distance standards without
the use of an alternative access standards request to submit to the department documentation demonstrating efforts to contract with providers, as specified. The bill would require a Medi-Cal managed care plan, effective no sooner than contract periods commencing on or after January 1, 2026, to inform enrollees of their option to use or not use telehealth, covered transportation services, or out-of-network providers to access covered services if the health care provider is located outside of the time or distance standards.</html:p>
<html:p>Existing law requires the department to annually evaluate a managed care plan’s compliance with the time or distance and appointment time standards and to annually publish a report of its findings, as specified.</html:p>
<html:p>This bill would require, effective for contract periods commencing on or after January 1, 2029, the evaluation by the department for appointment time standards compliance to be performed using a direct testing method, as specified.</html:p>
<html:p>The bill would authorize the department to require enhanced time or distance standards that are more stringent than the time or distance standards described above in its contracts with Medi-Cal managed care plans. The bill would require the department to ensure that these enhanced standards are consistent
across contracts for similar geographic classifications. The bill would require the department to publish all enhanced time and distance standards adopted by contract with a rationale for the enhanced standards.</html:p>
<html:p>Under the bill, in alignment with federal regulation that requires the department to conduct analyses when developing or adjusting network adequacy standards, the department would be required to publish on its internet website by January 1, 2027, a specified workplan. The bill would also require the department to convene a stakeholder
workgroup and to provide a 30-day public comment period, as specified.</html:p>
<html:p>Existing law requires the department, to the extent permitted under federal law, to require a Medi-Cal managed care plan that is not licensed by the Department of Managed Health Care to comply with applicable requirements, under specified provisions relating to health equity and quality, for the purpose of serving applicable Medi-Cal beneficiaries.</html:p>
<html:p>Under this bill, for purposes of implementing specified federal final rules relating to Medicaid, the department would be authorized to enter into contracts, or amend existing contracts, as specified. The bill would make this provision inoperative on January 1, 2029.</html:p>
<html:p>The bill would authorize the department to implement the above-described provisions, relating to the health equity and quality requirements and to the Medicaid final rules, through all-county letters or similar instructions without taking any further regulatory action.</html:p>
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<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_5DCEFC66-7032-4964-A487-C550738C3D4B">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:WIC:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'9.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'PART'%20and%20caml%3ANum%3D'3.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'7.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'ARTICLE'%20and%20caml%3ANum%3D'6.3.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'14197.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 14197 of the
<ns0:DocName>Welfare and Institutions Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_9F038B27-317B-4485-8CB9-E9D40F0BCBA6">
<ns0:Num>14197.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
It is the intent of the Legislature that the department implement and monitor compliance with the time or distance requirements set forth in Sections 438.68, 438.206, and 438.207 of Title 42 of the Code of Federal Regulations and this section, to ensure that all Medi-Cal managed care covered services are available and accessible to enrollees of Medi-Cal managed care plans in a timely manner, as those standards were enacted in May 2016.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Commencing January 1, 2018, for covered benefits under its contract, as applicable, a Medi-Cal managed care plan shall maintain a network of providers that are located within the following time or distance standards for the following services:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
For primary care, both adult and pediatric, 10 miles or 30 minutes from the beneficiary’s place of residence.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For hospitals, 15 miles or 30 minutes from the beneficiary’s place of residence.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For dental services provided by a Medi-Cal managed care plan, 10 miles or 30 minutes from the beneficiary’s place of residence.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
For obstetrics and gynecology primary care, 10 miles or 30 minutes from the beneficiary’s place of residence.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Commencing July 1, 2018, for the covered benefits under its contracts, as applicable, a Medi-Cal managed care plan shall maintain a network of providers that
are located within the following time or distance standards for the following services:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
For specialists, as defined in subdivision (i), adult and pediatric, including obstetric and gynecology specialty care, as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Up to 15 miles or 30 minutes from the beneficiary’s place of residence for the following counties: Alameda, Contra Costa, Los Angeles, Orange, Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Up to 30 miles or 60 minutes from the beneficiary’s place of residence for the following counties: Marin, Placer, Riverside, San Joaquin, Santa Cruz, Solano, Sonoma, Stanislaus, and Ventura.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Up to 45 miles or 75 minutes
from the beneficiary’s place of residence for the following counties: Amador, Butte, El Dorado, Fresno, Kern, Kings, Lake, Madera, Merced, Monterey, Napa, Nevada, San Bernardino, San Luis Obispo, Santa Barbara, Sutter, Tulare, Yolo, and Yuba.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Up to 60 miles or 90 minutes from the beneficiary’s place of residence for the following counties: Alpine, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Imperial, Inyo, Lassen, Mariposa, Mendocino, Modoc, Mono, Plumas, San Benito, Shasta, Sierra, Siskiyou, Tehama, Trinity, and Tuolumne.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
For pharmacy services, 10 miles or 30 minutes from the beneficiary’s place of residence.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
For outpatient mental health services, as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Up to 15 miles or 30 minutes from the beneficiary’s place of residence for the following counties: Alameda, Contra Costa, Los Angeles, Orange, Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Up to 30 miles or 60 minutes from the beneficiary’s place of residence for the following counties: Marin, Placer, Riverside, San Joaquin, Santa Cruz, Solano, Sonoma, Stanislaus, and Ventura.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Up to 45 miles or 75 minutes from the beneficiary’s place of residence for the following counties: Amador, Butte, El Dorado, Fresno, Kern, Kings, Lake, Madera, Merced, Monterey, Napa, Nevada, San Bernardino, San Luis Obispo, Santa Barbara, Sutter, Tulare, Yolo, and Yuba.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Up to 60 miles or 90 minutes from
the beneficiary’s place of residence for the following counties: Alpine, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Imperial, Inyo, Lassen, Mariposa, Mendocino, Modoc, Mono, Plumas, San Benito, Shasta, Sierra, Siskiyou, Tehama, Trinity, and Tuolumne.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
For outpatient substance use disorder services other than opioid treatment programs, as follows:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Up to 15 miles or 30 minutes from the beneficiary’s place of residence for the following counties: Alameda, Contra Costa, Los Angeles, Orange, Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Up to 30 miles or 60 minutes from the beneficiary’s place of residence for the following counties: Marin, Placer, Riverside, San
Joaquin, Santa Cruz, Solano, Sonoma, Stanislaus, and Ventura.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Up to 60 miles or 90 minutes from the beneficiary’s place of residence for the following counties: Alpine, Amador, Butte, Calaveras, Colusa, Del Norte, El Dorado, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Kings, Lake, Lassen, Madera, Mariposa, Mendocino, Merced, Modoc, Monterey, Mono, Napa, Nevada, Plumas, San Benito, San Bernardino, San Luis Obispo, Santa Barbara, Shasta, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tulare, Tuolumne, Yolo, and Yuba.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
For opioid treatment programs, as follows:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Up to 15 miles or 30 minutes from the beneficiary’s place of residence for the following counties: Alameda, Contra Costa, Los Angeles, Orange,
Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Up to 30 miles or 60 minutes from the beneficiary’s place of residence for the following counties: Marin, Placer, Riverside, San Joaquin, Santa Cruz, Solano, Sonoma, Stanislaus, and Ventura.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Up to 45 miles or 75 minutes from the beneficiary’s place of residence for the following counties: Amador, Butte, El Dorado, Fresno, Kern, Kings, Lake, Madera, Merced, Monterey, Napa, Nevada, San Bernardino, San Luis Obispo, Santa Barbara, Sutter, Tulare, Yolo, and Yuba.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
Up to 60 miles or 90 minutes from the beneficiary’s place of residence for the following counties: Alpine, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Imperial, Inyo, Lassen, Mariposa, Mendocino,
Modoc, Mono, Plumas, San Benito, Shasta, Sierra, Siskiyou, Tehama, Trinity, and Tuolumne.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
A Medi-Cal managed care plan shall comply with the appointment time standards developed pursuant to Section 1367.03 of the Health and Safety Code, Section 1300.67.2.2 of Title 28 of the California Code of Regulations, subject to any authorized exceptions in Section 1300.67.2.2 of Title 28 of the California Code of Regulations, and the standards set forth in contracts entered into between the department and Medi-Cal managed care plans.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Commencing July 1, 2018, subparagraph (A) applies to Medi-Cal managed care plans that are not, as of January 1, 2018, subject to the appointment time standards described in subparagraph (A).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A Medi-Cal managed care plan shall ensure that each subcontractor network complies with the appointment time standards described in subparagraph (A), unless already required to ensure compliance.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A Medi-Cal managed care plan shall comply with the following availability standards for skilled nursing facility services and intermediate care facility services, as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Within five business days of the request for the following counties: Alameda, Contra Costa, Los Angeles, Orange, Sacramento, San Diego, San Francisco, San Mateo, and Santa Clara.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Within seven business days of the request for the following counties: Marin, Placer,
Riverside, San Joaquin, Santa Cruz, Solano, Sonoma, Stanislaus, and Ventura.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Within 14 calendar days of the request for the following counties: Amador, Butte, El Dorado, Fresno, Kern, Kings, Lake, Madera, Merced, Monterey, Napa, Nevada, San Bernardino, San Luis Obispo, Santa Barbara, Sutter, Tulare, Yolo, and Yuba.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Within 14 calendar days of the request for the following counties: Alpine, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Imperial, Inyo, Lassen, Mariposa, Mendocino, Modoc, Mono, Plumas, San Benito, Shasta, Sierra, Siskiyou, Tehama, Trinity, and Tuolumne.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A county Drug Medi-Cal organized delivery system shall provide an appointment within three business days to an opioid treatment program.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A dental managed care plan shall provide an appointment within four weeks of a request for routine pediatric dental services and within 30 calendar days of a request for specialist pediatric dental services.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The department may authorize a Medi-Cal managed care plan to use clinically appropriate video synchronous interaction, as defined in paragraph (5) of subdivision (a) of Section 2290.5 of the Business and Professions Code, as a means of demonstrating compliance with the time or distance standards established pursuant to this section, as defined by the department. The use of telehealth providers to meet time or distance standards does not absolve the Medi-Cal managed care plan of responsibility to provide a beneficiary with access, including transportation, to in-person services
if the beneficiary prefers.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The department may develop policies for granting credit in the determination of compliance with time or distance standards established pursuant to this section when Medi-Cal managed care plans contract with specified providers to use clinically appropriate video synchronous interaction, as defined in paragraph (5) of subdivision (a) of Section 2290.5 of the Business and Professions Code, and only for Medi-Cal managed care plans that cover at least 85 percent of the population points in the ZIP Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department, upon request of a Medi-Cal managed care plan,
may authorize alternative access standards for the time or distance standards established under this section if either of the following occurs:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The requesting Medi-Cal managed care plan has exhausted all other reasonable options to obtain providers to meet the applicable standard.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The department determines that the requesting Medi-Cal managed care plan has demonstrated that its delivery structure is capable of delivering the appropriate level of care and access.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
If a Medi-Cal managed care plan cannot meet the time or distance standards
set forth in this section, the Medi-Cal managed care plan shall submit a request for alternative access standards to the department, in the form and manner specified by the department.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
An alternative access standard request may be submitted at the same time as the Medi-Cal managed care plan submits its annual demonstration of compliance with time or distance standards, if known at that time and at any time the Medi-Cal managed care plan is unable to meet time or distance standards.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A Medi-Cal managed care plan is not required to submit a previously approved alternative access standard request to the department for review and approval on an annual basis, unless the Medi-Cal managed care plan requires modifications to its previously approved request. However, the Medi-Cal managed care plan shall submit this previously approved alternative access standard request to the department at least every three years for review and approval when the plan is required to demonstrate compliance with time or distance standards.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Medi-Cal managed care plans that do not meet time or distance standards without
the use of an alternative access standards request shall submit to the department documentation demonstrating efforts to contract with providers in those areas, based on guidance by the department.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Effective no sooner than contract periods commencing on or after January 1, 2026, the Medi-Cal managed care plan shall inform enrollees of their option to use or not use telehealth, covered transportation services, or out-of-network providers to access covered services if the health care provider is located outside of the time or distance standards specified in subdivision (c) in a manner specified by the department.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A Medi-Cal managed care plan shall close out any corrective action plan deficiencies in a timely manner to ensure that beneficiary access is
adequate and shall continually work to improve access in its provider network.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A request for alternative access standards shall be approved or denied on a ZIP Code and provider type, including specialty type, basis by the department within 90 days of submission of the request. The Medi-Cal managed care plan shall also include a description of the reasons justifying the alternative access standards based on those facts and circumstances. Effective no sooner than contract periods commencing on or after July 1, 2020, the Medi-Cal managed care plan shall include a description on how the Medi-Cal managed care plan intends to arrange for enrollees
to access covered services if the health care provider is located outside of the time or distance standards specified in subdivision (c). The department may stop the 90-day timeframe, on one or more occasions as necessary, in the event of an incomplete submission or to obtain additional information from the Medi-Cal managed care plan requesting the alternative access standards. Upon submission of
sufficient additional information to the department, the 90-day timeframe shall resume at the same point in time it was previously stopped, except if there is less than 30 days remaining in which case the department shall approve or deny the request within 30 days of submission of sufficient additional information. If the department rejects the Medi-Cal managed care plan’s proposal, the department shall inform the Medi-Cal managed care plan of the department’s reason for rejecting the proposal. The department shall post any approved alternative access standards on its internet website.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
As part of the department’s evaluation of a request submitted by a Medi-Cal managed care plan to utilize an alternative access standard pursuant to this subdivision, the department shall evaluate and determine whether the resulting
time or distance is reasonable to expect a beneficiary to travel to receive care.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Effective for contract periods commencing on or after January 1, 2027, as part of the department’s evaluation of a request pursuant to this subdivision, the department shall also consider the sufficiency of payment rates offered by the Medi-Cal managed care plan to the provider type or for the service type for which an
alternative access standard is being requested.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
The department may authorize a Medi-Cal managed care plan to use clinically appropriate video synchronous interaction, as defined in paragraph (5) of subdivision (a) of Section 2290.5 of the Business and Professions Code, as part of an alternative access standard request.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Effective for contract periods commencing on or after July 1, 2018, a Medi-Cal managed care plan shall, on an annual basis and when requested by the department, demonstrate to the department the Medi-Cal managed care plan’s compliance with the time or distance and appointment time standards developed pursuant to
this section. The report shall measure compliance separately for adult and pediatric services for primary care, behavioral health, and core specialist services.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
Effective for contract periods commencing on or after January 1, 2026, a Medi-Cal managed care plan shall, on an annual basis and when requested by the department, demonstrate to the department each subcontractor network’s compliance with the time or distance and appointment time standards developed pursuant to this section, including how the Medi-Cal managed care plan arranged for the delivery of
Medi-Cal covered services to Medi-Cal enrollees, such as through the use of either Medi-Cal covered transportation or clinically appropriate video synchronous interaction, as specified in paragraph (6) of subdivision (f), if the enrollees of a Medi-Cal managed care plan needed to obtain health care services from a health care provider or a facility located outside of the time or distance standards, as specified in subdivision (c), in accordance with the CalAIM 1915(b) Waiver Special Terms and Conditions A4.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
This subparagraph shall not apply to dental managed care plans, or to Medi-Cal behavioral health delivery systems as defined in subdivision (i) of Section 14184.101.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Effective for contract periods commencing on or after July 1, 2020, the Medi-Cal managed care plan shall demonstrate, on an annual basis, and when
requested by the department, to the department how the Medi-Cal managed care plan arranged for the delivery of Medi-Cal covered services to Medi-Cal enrollees, such as through the use of either Medi-Cal covered transportation or clinically appropriate video synchronous interaction, as specified in paragraph (6) of subdivision (f), if the enrollees of a Medi-Cal managed care plan needed to obtain health care services from a health care provider or a facility located outside of the time or distance standards, as specified in subdivision (c).
</html:p>
<html:p>The report shall measure compliance separately for adult and pediatric services for primary care, behavioral health,
and core specialist services.</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Effective for contract periods commencing on or after July 1, 2018, the department shall evaluate on an annual basis a Medi-Cal managed care plan’s compliance with the time or distance and appointment time standards implemented pursuant to this section. This evaluation may include, but need not be limited to, annual and random surveys, investigation of complaints, grievances, or other indicia of noncompliance. Nothing in this subdivision shall be construed to limit the appeal rights of a Medi-Cal managed care plan under its contracts with the department.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Effective for contract periods commencing on or after January 1, 2029, the evaluation by the department for appointment time standards compliance as described in this paragraph shall be performed using a direct testing method, which shall include, but need not be limited to, a “secret shopper” method. The direct testing shall be used to evaluate compliance with the appointment time standards set forth in
subdivision (d) for appointments. To determine compliance with the urgent care standard, the evaluation shall measure the network’s ability to provide urgent care within 48 hours pursuant to Section 1367.03 of the Health and Safety Code and Section 1300.67.2.2(c)(5)(A) of Title 28 of the California Code of Regulations. The evaluation shall also utilize a method for accounting for and reporting the number of providers who are unavailable or unreachable for purposes of the evaluation.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Failure to comply with the evaluations required by this paragraph may result in contract termination or the issuance of sanctions pursuant to Section 14197.7.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The department shall publish annually on its internet website a report that details the department’s findings in evaluating a Medi-Cal managed care plan’s compliance under paragraph (2). At a minimum, the department shall specify in this report those Medi-Cal managed care plans, if any, that were subject to a corrective action plan due to noncompliance with the time or distance and appointment time standards implemented pursuant to this section during the
applicable year and the basis for the department’s finding of noncompliance. The report shall include a Medi-Cal managed care plan’s response to the corrective plan, if available.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
The department shall consult with Medi-Cal managed care plans, including dental managed care plans, mental health plans, and Drug Medi-Cal Organized Delivery System programs, health care providers, consumers, providers and consumers of long-term services and supports, and
organizations representing Medi-Cal beneficiaries in the implementation of the requirements of this section.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
For purposes of this section, the following definitions apply:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
“Medi-Cal managed care plan” means any individual, organization, or entity that enters into a contract with the department to provide services to enrolled Medi-Cal beneficiaries pursuant to any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Article 2.7 (commencing with Section 14087.3), including dental managed care programs developed pursuant to Section 14087.46.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Article 2.8 (commencing with Section 14087.5).
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Article 2.81 (commencing
with Section 14087.96).
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Article 2.82 (commencing with Section 14087.98).
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Article 2.9 (commencing with Section 14088).
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Article 2.91 (commencing with Section 14089).
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Chapter 8 (commencing with Section 14200), including dental managed care plans.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
Chapter 8.9 (commencing with Section 14700).
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
A county Drug Medi-Cal organized delivery system authorized under the California Medi-Cal 2020 Demonstration pursuant to Article 5.5 (commencing with Section 14184) or a successor demonstration or waiver, as applicable.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
“Specialist” means
any of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Cardiology/interventional cardiology.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Nephrology.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Dermatology.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Neurology.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Endocrinology.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
Ophthalmology.
</html:p>
<html:p>
(G)
<html:span class="EnSpace"/>
Ear, nose, and throat/otolaryngology.
</html:p>
<html:p>
(H)
<html:span class="EnSpace"/>
Orthopedic surgery.
</html:p>
<html:p>
(I)
<html:span class="EnSpace"/>
Gastroenterology.
</html:p>
<html:p>
(J)
<html:span class="EnSpace"/>
Physical medicine and
rehabilitation.
</html:p>
<html:p>
(K)
<html:span class="EnSpace"/>
General surgery.
</html:p>
<html:p>
(L)
<html:span class="EnSpace"/>
Psychiatry.
</html:p>
<html:p>
(M)
<html:span class="EnSpace"/>
Hematology.
</html:p>
<html:p>
(N)
<html:span class="EnSpace"/>
Oncology.
</html:p>
<html:p>
(O)
<html:span class="EnSpace"/>
Pulmonology.
</html:p>
<html:p>
(P)
<html:span class="EnSpace"/>
HIV/AIDS specialists/infectious diseases.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
“Subcontractor network” means a provider network of a subcontractor or downstream subcontractor, wherein the subcontractor or downstream subcontractor is delegated risk and is responsible for arranging for the provision of, and paying for, covered services as stated in their subcontractor or downstream subcontractor
agreement.
</html:p>
<html:p>
(j)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The department may require enhanced time or distance standards that are more stringent than those set forth in this section in its contracts with Medi-Cal managed care plans. However, the other requirements of this section shall otherwise apply.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department shall ensure that enhanced time or distance standards contracted for with Medi-Cal managed care plans are consistent across contracts for similar geographic classifications.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The department shall publish all enhanced time and distance standards adopted by contract with a rationale for the enhanced standards.
</html:p>
<html:p>
(k)
<html:span class="EnSpace"/>
Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department, without taking any further regulatory action, may implement, interpret, or make specific this section by means of all-county letters, plan letters, plan or provider bulletins, or similar instructions until the time regulations are adopted.
</html:p>
<html:p>
(l)
<html:span class="EnSpace"/>
The department shall seek any federal approvals it deems necessary to implement this section. This section shall be implemented only to the extent that any necessary federal approvals are obtained and federal financial participation is available and is not otherwise jeopardized.
</html:p>
<html:p>
(m)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
In alignment with federal regulation that requires the department to conduct analyses when developing or adjusting network adequacy standards, the
department shall publish on the department’s internet website by January 1, 2027, a workplan that includes an explanation of the department’s approach to updating network adequacy standards, a description of the data, and a summary of the analyses that will inform the department’s approach.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
By January 1, 2027, the department shall convene a stakeholder workgroup to assist in the development of evidence-based network adequacy standards informed by the analyses described in paragraph (1).
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The department shall provide
a 30-day public comment period before implementing any changes to network adequacy standards.
</html:p>
<html:p>
(n)
<html:span class="EnSpace"/>
This section shall remain in effect only until January 1, 2029, and as of that date is repealed, unless a later enacted statute that is enacted before
January 1, 2029, deletes or extends that date.
</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 14197.9 of the
<ns0:DocName>Welfare and Institutions Code</ns0:DocName>
is amended to read:
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<ns0:LawSection id="id_EFDF3C20-D245-49AF-85E1-6625D59F7F18">
<ns0:Num>14197.9.</ns0:Num>
<ns0:LawSectionVersion id="id_58904688-5787-4D49-9CF1-6C110E012021">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
To the extent permitted under federal law, the department shall require a Medi-Cal managed care plan that is not licensed by the Department of Managed Health Care to comply with the applicable requirements in Article 11.9 (commencing with Section 1399.870) of Chapter 2.2 of Division 2 of the Health and Safety Code for the purpose of serving applicable Medi-Cal beneficiaries.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of this section, “Medi-Cal managed care plan” means an individual, organization, or entity that enters into a comprehensive risk contract with the department to provide covered full-scope health care services to enrolled Medi-Cal beneficiaries pursuant to this chapter or Chapter 8 (commencing with Section 14200).
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For purposes of implementing the Ensuring Access to Medicaid Services Final Rule, and the Medicaid and Children’s Health Insurance Program Managed Care Access, Finance, and Quality Final Rule, which were published in Volume 89, Number 92 of the Federal Register on May 10, 2024, the department may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding any other law, contracts entered into or amended pursuant to this subdivision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the Statewide Information Management
Manual, the State Administrative Manual, and the State Contracting Manuals, and shall be exempt from the review or approval of any division of the Department of General Services.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
This subdivision shall become inoperative on January 1, 2029.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement, interpret, or make specific this section, in whole or in part, by means of all-county letters, plan letters, provider bulletins, information notices, or other similar instructions, without taking any further regulatory action.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
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|