Bill Commons

CA AB 676

dead

Medi-Cal: unrecovered payments: interest rate.

California · 2025-2026 Regular Session · lower

Quick answers

Did CA AB 676 pass?

No. CA AB 676 did not pass — it was defeated or died in the legislative process (2026-02-02). Latest recorded action (2026-02-02): From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

What is CA AB 676 about?

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 requires the Director of Health Care Services to establish administrative appeal processes to review grievances or complaints arising from the findings of an audit or examination. Under existing law, if recovery of a disallowed payment has been made by the department, a provider who prevails in an appeal of that payment is entitled to interest at the rate equal to the monthly average received on investments in the Surplus Money Investment Fund, or simple interest at the rate of 7% per annum, whichever is higher. Under existing law, with exceptions, interest at that same rate is assessed against any unrecovered overpayment due to the department. In the case of an assessment against any unrecovered overpayment due to the department, this bill would require the department to waive the interest, as part of a repayment agreement entered into with the provider, if the latest date of service for a retroactive payment adjustment or audit period end date for the unrecovered overpayment occurred 4 or more years before the issuance of the first statement of account status or demand for repayment, and the department determines that certain factors apply. Under the bill, those factors would include, among others, the impact of the repayment amounts on the fiscal solvency of the provider, and whether the overpayment was caused by a policy change or departmental error that was not caused by the billing provider. The bill would preserve the rights of the department to seek all remedies available at law if a provider defaults on a repayment plan. This bill would authorize the department to implement, interpret, or make specific these provisions, in whole or in part, by means of information notices, all-county letters, or other similar instructions without taking regulatory action.

Who sponsors CA AB 676?

Jeff Gonzalez is the primary sponsor of CA AB 676.

Description

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 requires the Director of Health Care Services to establish administrative appeal processes to review grievances or complaints arising from the findings of an audit or examination. Under existing law, if recovery of a disallowed payment has been made by the department, a provider who prevails in an appeal of that payment is entitled to interest at the rate equal to the monthly average received on investments in the Surplus Money Investment Fund, or simple interest at the rate of 7% per annum, whichever is higher. Under existing law, with exceptions, interest at that same rate is assessed against any unrecovered overpayment due to the department. In the case of an assessment against any unrecovered overpayment due to the department, this bill would require the department to waive the interest, as part of a repayment agreement entered into with the provider, if the latest date of service for a retroactive payment adjustment or audit period end date for the unrecovered overpayment occurred 4 or more years before the issuance of the first statement of account status or demand for repayment, and the department determines that certain factors apply. Under the bill, those factors would include, among others, the impact of the repayment amounts on the fiscal solvency of the provider, and whether the overpayment was caused by a policy change or departmental error that was not caused by the billing provider. The bill would preserve the rights of the department to seek all remedies available at law if a provider defaults on a repayment plan. This bill would authorize the department to implement, interpret, or make specific these provisions, in whole or in part, by means of information notices, all-county letters, or other similar instructions without taking regulatory action.

Introduced
2025-04-09
Latest action
2026-02-02 — From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Bill type
bill
Last updated

Subjects

Sponsors

  • Jeff Gonzalezauthor

Committees

Not provided by source.

Action timeline

  1. 2025-02-14

    Read first time. To print.

    reading-1

  2. 2025-02-15

    From printer. May be heard in committee March 17.

  3. 2025-03-03

    Referred to Com. on HEALTH.

    referral-committee

  4. 2025-04-03

    In committee: Hearing postponed by committee.

  5. 2025-04-09

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

    amendment-introduction,amendment-passage,committee-passage,reading-1,reading-2,referral-committee

  6. 2025-04-10

    Re-referred to Com. on HEALTH.

    referral-committee

  7. 2025-04-23

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 16. Noes 0.) (April 22). Re-referred to Com. on APPR.

    committee-passage,committee-passage-favorable,referral-committee

  8. 2025-04-30

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

    referral-committee

  9. 2025-05-23

    In committee: Held under submission.

  10. 2026-01-31

    Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

    failure

  11. 2026-02-02

    From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

    committee-passage,failure

Versions

Documents

Votes

  • Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar

    2025-04-22 · pass · 16-0

    Member-level votes (16)
    • Chen: yes
    • Patel: yes
    • Rogers: yes
    • Sharp-Collins: yes
    • Krell: yes
    • Carrillo: yes
    • Celeste Rodriguez: yes
    • Bonta: yes
    • Flora: yes
    • Mark González: yes
    • Sanchez: yes
    • Aguiar-Curry: yes
    • Schiavo: yes
    • Stefani: yes
    • Patterson: yes
    • Addis: yes

Related bills

No related bills recorded for this bill.

Official source

Attribution

Data from openstates_bulk_csv, retrieved 2026-07-24T01:34:27.960412Z

Inspect retained evidence for changes recorded after evidence tracking began:

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