Health care legislation in the California Legislature, 2025–26.

A policy research snapshot for health care organizations. Discuss the current status, deadlines, and implications of a specific measure with the firm before acting.

On the Governor's desk.

All health care briefs

Bills and budget items, 2025–26 session.

  • SB 1120BillAI in health plan utilization review. A qualified human must make final medical-necessity determinations; AI-only denials are barred; DMHC and CDI have audit and penalty authority. In effect since January 2025, enforced.
  • Proposition 35ProgramPermanent managed care organization tax. Funds targeted Medi-Cal rate increases. New structure from January 1, 2027 pending federal approval; roughly two million enrollees move from managed care to fee-for-service by that date. Live, deadline-driven.
  • AB 108BillHospital closure grants. Up to $25 million in state grants for nonprofit and public hospitals at immediate risk of closure, administered by HCAI. Enacted 2026.

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