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California Watch

News stories in this section spotlight activities in California, including actions by the state Assembly and state Senate; proposed legislation; regulators like the Department of Managed Health Care and Department of Insurance; and the state ACA exchange, Covered California.

Doctors, Insurers Sue Newsom Over Health Insurance Premium Increases

In June, lawmakers passed a healthcare tax that could increase premiums in order to combat federal Medicaid cuts. The California Medical Association and California Association of Health Plans say in a new lawsuit that the tax violates Proposition 35, passed by voters in 2024.

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Fact Check: Did Newsom’s Mental Health Court Hit His Goal For Helping Californians?

Gov. Gavin Newsom this week claimed a major victory for CARE Court, his program to provide mental health treatment to Californians with serious conditions. Did it really help 10,000 people?”

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Billionaire Tax Is Dividing California Healthcare System It’s Designed to Support

A proposal to tax California’s billionaires has fractured Democratic politics, repelled some of the state’s richest residents and exploded into a costly battle that’s overshadowing even the gubernatorial election. Known as Proposition 40, the ballot measure is also dividing the very industry it’s supposed to help. The healthcare-workers union behind the initiative, which would authorize ...

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Blue Shield Of California To Expand Virtual Blue Program In 2027

Blue Shield of California announced Thursday that it plans to expand its Virtual Blue program, doubling program enrollment for members. Beginning in January 2027, the benefit will be included in fully insured preferred provider organization (PPO) plans for employers with 101 to 3,000 employees, as well as for certain individual and family plans, the insurer ...

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Health Net Group Market Exit: Broker & Member FAQs

Health Net has released FAQs to help brokers and members navigate its exit from the California Small Group and Large Group medical markets. These resources provide information directly from Health Net regarding the transition, including important details and guidance for affected groups. View Health Net Broker FAQs View Health Net Member FAQs We encourage brokers ...

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Drugs for Autoimmune Diseases are Pricey. This Bill Could Switch Patients to a Cheaper One

Nearly 25,000 Californians could see their medication switched next year. Doctors can object, but insurers would gain new power over prescriptions.

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Health Net Group Market Exit

Overview Health Net is exiting the California Small Group and Large Group medical markets. The exit impacts all Health Net Small Group and Large Group medical groups, including groups enrolled through CalChoice. This change does not impact the Medi-Cal, Marketplace/Covered California or Medicare lines of business. The final Health Net renewal and new-business effective date is September ...

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‘It’s Triage’: California’s Next Governor Will Face Destabilizing Surge in Uninsured

By the time Democrat Xavier Becerra left Washington, D.C., more Americans than ever had health insurance, owing partly to his work over the years to pass, defend, and expand the Affordable Care Act. It’s an achievement the former congressman and former U.S. secretary of Health and Human Services often touts as he campaigns for California governor against Republican Steve Hilton, a ...

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California’s Healthcare Affordability Office Claims Power to Punish Overspending Hospitals

New penalties can fine hospitals and insurers up to 125% of their overspending, with enforcement starting as early as 2028. Hospital executives argue much of their spending, like drug costs and labor, is outside their control.

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Centene’s Health Net To Exit Commercial Group Market In California, Oregon

Centene subsidiary Health Net is pulling out of the commercial employer group market in California and Oregon, the company confirmed to Becker’s. “Health Net has made the decision to exit the traditional commercial group business in California and Oregon in order to focus on government sponsored healthcare,” a spokesperson for the insurer said in a statement. ...

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