AB 616 — Medical Group Financial Transparency Act.

Summary

Existing law establishes the Office of Health Care Affordability within the Department of Health Care Access and Information to analyze the health care market for cost trends and drivers of spending, develop data-informed policies for lowering health care costs for consumers and purchasers, and create a state strategy for controlling the cost of health care. Existing law requires the office to collect data and other information it deems necessary from health care entities to carry out the functions of the office, and requires the office to require providers and physician organizations to submit audited financial reports or comprehensive financial statements, as specified. Existing law requires those reports and statements to be kept confidential, and specifies that they are not required to be disclosed under the California Public Records Act. Existing law requires the office to obtain information about health care service plans from the Department of Managed Health Care. Existing law requires a contract between a health care service plan and a risk-bearing organization to include provisions concerning the risk-bearing organization's administrative and financial capacity. Existing law requires the director of the Department of Managed Health Care to adopt regulations regarding, among other things, periodic reports from a health care service plan that include information concerning the risk-bearing organizations and the type and amount of financial risk they have assumed. Existing law establishes, within the office, the Health Care Affordability Board, composed of 8 members, appointed as prescribed. This bill, the Medical Group Financial Transparency Act, would authorize the disclosure of audited financial reports and comprehensive financial statements of providers and physician organizations collected by the Office of Health Care Affordability and financial and other records of risk-bearing organizations made available to the Department of Managed Health Care. This bill would authorize the board, members of the board, the office, the department, and the employees, contractors, and advisors of the office and the department to use confidential audited financial reports and comprehensive financial statements only as necessary to carry out functions of the office. The bill would also require certain physician organizations, as specified, to produce or disclose audited financial reports and comprehensive financial statements to the office, subject to these provisions. The bill would require the audited financial reports and comprehensive financial statements produced or disclosed to the office to be made available to the public, by the office, as specified. The bill would also make related findings and declarations.

Bill Text

• Enrolled 09/14/23 - Enrolled Current pdf September 14, 2023
• Amended 07/06/23 - Amended Senate pdf July 06, 2023
• Amended 03/28/23 - Amended Assembly pdf March 28, 2023
• Introduced 02/09/23 - Introduced pdf February 09, 2023
• AB616 View text html

Action History

1. January 30, 2024

   Consideration of Governor's veto stricken from file.

2. January 03, 2024

   Consideration of Governor's veto pending.

3. October 13, 2023

   Vetoed by Governor.

4. September 19, 2023

   Enrolled and presented to the Governor at 4 p.m.

5. September 12, 2023

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 54. Noes 17. Page 3235.).

6. September 12, 2023

   Assembly Rule 77 suspended. (Page 3228.)

7. September 11, 2023

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 13 pursuant to Assembly Rule 77.

8. September 11, 2023

   Read third time. Passed. Ordered to the Assembly. (Ayes 23. Noes 9. Page 2553.).

9. September 05, 2023

   Read second time. Ordered to third reading.

10. September 01, 2023

    From committee: Do pass. (Ayes 5. Noes 2.) (September 1).

11. August 14, 2023

    In committee: Referred to APPR suspense file.

12. July 12, 2023

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (July 11). Re-referred to Com. on APPR.

13. July 06, 2023

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

14. July 06, 2023

    From committee: Do pass and re-refer to Com. on JUD. (Ayes 9. Noes 1.) (July 5). Re-referred to Com. on JUD.

15. June 14, 2023

    Referred to Coms. on HEALTH and JUD.

16. June 01, 2023

    In Senate. Read first time. To Com. on RLS. for assignment.

17. May 31, 2023

    Read third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 2028.)

18. May 18, 2023

    Read second time. Ordered to third reading.

19. May 18, 2023

    From committee: Do pass. (Ayes 11. Noes 4.) (May 18).

20. May 10, 2023

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

21. May 03, 2023

    In committee: Hearing postponed by committee.

22. April 12, 2023

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 4.) (April 11). Re-referred to Com. on APPR.

23. March 29, 2023

    Re-referred to Com. on HEALTH.

24. March 28, 2023

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

25. February 17, 2023

    Referred to Com. on HEALTH.

26. February 10, 2023

    From printer. May be heard in committee March 12.

27. February 09, 2023

    Read first time. To print.

Sponsors

• Rodriguez · Primary
• Dawn Addis · Cosponsor
• Mike Fong · Cosponsor
• Ash Kalra · Cosponsor
• Tina McKinnor · Cosponsor
• Liz Ortega · Cosponsor
• Santiago · Cosponsor
• Pilar Schiavo · Cosponsor
• Lola Smallwood-Cuevas · Cosponsor
• Henry I. Stern · Cosponsor
• Scott D. Wiener · Cosponsor

Votes

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