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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.

After 2 Years Of Shortfalls, California Governor Proposes $322B Budget With No Deficit

California Gov. Gavin Newsom has proposed a $322 billion budget without a deficit, a welcome change after two years of significant budget shortfalls in the nation’s most populous state. But the budget Newsom announced Monday is mostly a placeholder as California waits to see if incoming President Donald Trump will follow through on threats to revoke billions ...

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New California Law Prohibits Using AI As Basis To Deny Health Insurance Claims

Last year, about a quarter of all health insurance claims were denied in California — a reality mirrored nationwide that has stoked public anger toward health care companies, and led to accusations that such decisions lack human empathy.

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Gov. Gavin Newsom Announced A $322.2 Billion Budget With No Deficit. Here’s What’s In It

California no longer faces a budget deficit, Gov. Gavin Newsom said Monday, two months after budget officials projected a $2 billion deficit that had left little room for additional government spending.

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Sansum/Sutter and Anthem Reach Agreement on Health Insurance Contracts for 2025

As a contract deadline approached on December 31, 2024, negotiations between Sansum Clinic/Sutter Health and Anthem Blue Cross reached a new agreement that could affect more than 129,000 patients. Sansum is the largest nonprofit medical group for outpatient care in the Santa Barbara area. The agreement allows patients to keep their in-network doctors and care ...

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Newsom Aims To Limit Unhealthy Food In California, Getting Ahead Of Trump Administration And RFK Jr.

Gov. Gavin Newsom issued an executive order on Friday attempting to limit access to ultra-processed foods, a directive he cast as a continuation of California’s “nation leading” nutrition and health standards. “The food we eat shouldn’t make us sick with disease or lead to lifelong consequences,” Newsom said in a statement. “California has been a ...

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California Health Care Legislative Update: Winter 2024

Governor Newsom signed over 1300 bills and vetoed almost 190 bills in 2024. Consistent with prior years, in 2024, California enacted multiple laws significantly impacting the health care industry. From artificial intelligence (AI) to providers to health plans, these new laws require proactive efforts to ensure on-going compliance. We highlight below the most important of ...

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After Reducing Deficit, Newsom Proposals Bring Extra Costs To California

Tax revenues have exceeded estimates in California, but Gov. Gavin Newsom’s spending proposals and other state costs could quickly swallow up any extra funds.

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Los Angeles County Announces $2 Billion Medical Debt Relief Program

Los Angeles County announced its $2 billion Medical Debt Relief Program aimed at helping low-income residents settle past-due bills. “The launch of this program is a critical step forward in ensuring that those receiving critical medical services do not find themselves experiencing financial harm associated with not being able to afford care,” said Dr. Barbara ...

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How Potential Medicaid Cuts Could Play Out in California

California, like other states, depends heavily on federal dollars to provide care for its poorest residents. Analyses in 2017 showed GOP’s proposals would cut Medicaid funds flowing from Washington by tens of billions of dollars, perhaps even more, forcing state officials to rethink the scope of Medi-Cal.

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Amazon-Abarca Pharmacy Venture With Blue Shield Of California Readies January Launch

The much-anticipated launch of Blue Shield of California’s drug benefit venture with Amazon Pharmacy and the pharmacy benefit manager Abarca will debut in January, executives involved say. When the venture was first announced in August of last year, it sent the stocks of the nation’s largest managers of pharmacy benefits plummeting when Blue Shield confirmed it ...

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