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AB-220 Medi-Cal: subacute care services

Governor Newsom vetoed AB 220 on September 27, leaving the proposed subacute authorization restrictions unenacted.

What happened

Governor Newsom returned AB 220 without his signature on September 27. The enrolled September 3 bill would have barred a Medi-Cal managed care plan from adding medical-necessity criteria when a provider substantiates one of the specified pediatric subacute criteria. It also would have required plans to accept a DHCS standard authorization or reauthorization form if DHCS developed one for pediatric or adult subacute services, prohibited a plan-created substitute form, and prohibited a subsequent treatment authorization request when a patient returns from a bed hold for acute hospitalization. Those proposed statutory changes did not become law through this bill.

The signed veto message explains that plans already must apply subacute medical-necessity criteria aligned with Medi-Cal policy. It cites DHCS clarifying guidance issued in June and concludes the bill is unnecessary, while emphasizing preservation of utilization management and avoidance of added General Fund costs. That explanation does not establish that every proposed form or reauthorization restriction already exists independently. As of October 4, the proposal remains closed; facilities and plans should assess actual governing Medi-Cal policy and authorization requirements separately from the vetoed language.

Scope and timing

Authority status
Proposed
Applicability
Potentially applicable
Audience
Health systems, Provider networks
Jurisdiction
California
Affected functions
Utilization Management, Managed Care, Compliance, Legal, Clinical Operations
Responsible owner
Utilization Management

Why it matters

The veto ends this bill’s implementation track while leaving existing subacute eligibility, authorization and continuity obligations relevant to care transitions.

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.

Read the entire Medicare & Medicaid report →

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