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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.

New California Law Mandates Fertility & IVF Coverage for Large Group Plans – with New Requirements for Small Group Plans

A new California law is about to make infertility coverage – including IVF (in vitro fertilization) – a standard benefit in fully insured Large Group plans. SB 729, signed into law by Governor Newsom in 2024, requires plans issued, amended, or renewed on or after July 1, 2025, to include coverage for the diagnosis and treatment of ...

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States Sue Trump Administration For Rescinding Billions In Health Funding

A coalition of states sued the Trump administration last Tuesday over its decision to cut $11 billion in federal funds that go toward COVID-19 initiatives and various public health projects across the country.

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Newsom Appeals ‘Irrational And Malicious’ Decision To Cut USDA Food Assistance Program

Gov. Gavin Newsom sent an urgent appeal to the U.S. Department of Agriculture on Saturday, imploring the department to reverse the abrupt cancellation of a Biden-era program that feeds millions of California families and has served as a lifeline for hundreds of small farmers since its inception in 2021. “The irrational and malicious slashing of funds ...

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Fearing Trump Cuts, California Democrat Proposes Creating State’s Own NIH

An ambitious California Democrat wants the world’s fifth-largest economy to create its own National Institutes of Health and vaccine program, saying the state can’t rely on the administration to support research and science.

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When Will California See The Money Prop 35 Promised?

The powerful health care interests who put Proposition 35 on the ballot last November had a simple pitch for the complex initiative: a tax no voter paid would provide a long-awaited pay bump to doctors and hospitals who serve the state’s lowest-income residents.

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DMHC Directs Plans To Provide Flexibilities For Providers Displaced By So Cal Wildfires

On March 19, 2025, the California Department of Managed Health Care (DMHC) issued an All Plan Letter (APL 25-005) directing its regulated health plans to provide specific flexibilities to providers who were displaced by the devastating wildfires in Los Angeles and Ventura counties earlier this year.

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Newsom’s Office Seeks Another $2.8B To Plug Medicaid Gap

The request comes on top of a $3.44 billion loan proposed last week, with costs for undocumented residents running higher than expected.

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California Lawmakers Demand Answers On Medicaid Shortfall

The $3.44 billion loan, first floated to lawmakers Wednesday, will cover obligations for Medi-Cal, through March, but it’s raising questions about a bigger budget hole that may need to be filled later on. Lawmakers said they were caught off guard by the news and still don’t understand the extent of the shortfall.

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Blue Shield Of California CEO Exits After 2 Months

Blue Shield of California CEO Lois Quam is stepping down after two months on the job. The nonprofit health plan will begin a search for a permanent CEO and has appointed CFO Mike Stuart as interim president and CEO, according to a March 11 news release. Mr. Stuart was appointed Blue Shield’s CFO in 2022 and previously ...

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Company Sold ‘Sham’ Health Insurance In California, Must Return $800k To Customers CA DOJ Says

Two companies have agreed to a $1.3 million settlement after they were accused of selling “sham” health insurance plans, the California Department of Justice said. According to the CA DOJ, Sedera, Inc. and Sedera Medical Cost Sharing Community, LLC (SMC) billed customers monthly in exchange for the payment of medical services, a plan which they ...

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