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Payment & health plan rulesNew in this edition

California requires added electronic notices when health plan provider contracts terminate

AB 2613 adds opt-in electronic delivery to affected health-plan contract-termination and restoration notices.

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What happened

Chapter 306, signed September 18, adds electronic delivery alongside mailed notices for specified health-plan provider-group and general acute care hospital contract terminations. Plans must file the proposed enrollee notice with DMHC at least 75 days before termination and generally notify affected enrollees at least 60 days before. Text or email delivery applies when the enrollee opted into electronic communications and supplied the required contact information. The statute retains affected-population and geographic rules, a qualified exigent-circumstances waiver process, and a hospital-only termination-notice limit for PPO enrollees.

If the parties restore or renew a contract, the notice distinguishes an agreement reached before termination, preserving assignment, from one reached after termination, offering the option to return. Plans must submit the restoration notice within five business days of agreement and send it within 10 business days after DMHC approval, using mail plus qualifying electronic delivery. The 2025–2026 amendments do not apply to specified Medi-Cal managed-care contracts with DHCS. Ordinary commencement is January 1, 2027; September enactment does not itself establish that a particular termination or restoration has occurred.

Scope and timing

Authority status
Final
Applicability
Directly applicable
Audience
Health systems, Provider networks
Jurisdiction
California
Recorded date
2027-01-01
Date type
effective

Why it matters

Plans need recipient preferences and event timing linked to notice workflows, with restoration handled differently before and after termination.

Sources

Complete edition and supplemental material

This finding in the complete approved report →

Regulatory horizons, CIA trends and implementation trackers remain in the full report.

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