AB-220 Medi-Cal: subacute care services
Oct 4, 2026 edition · GC-2026-0055 · Published 2026-10-04 · Version 2 · Proposed
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.
Recommended action
Close work tied solely to AB 220. Confirm existing DHCS subacute guidance, bed-hold return procedures and contract requirements before changing authorization controls.
Sources
- AB-220 Medi-Cal: subacute care services, bill historyOfficial · California Legislature · 2026-09-09 · Source review 2026-09-10
- AB-220 Medi-Cal: subacute care services, current bill text (09/03/26 - Enrolled)Official · California Legislature · 2026-09-03 · Source review 2026-09-10
- Governor Newsom issues legislative update 9.27.2026Official · Office of the Governor · 2026-09-27 · Source review 2026-10-04
- California Legislative Information, AB 220 bill historyOfficial · California Legislature · 2026-09-27 · Source review 2026-10-04
- Official retained source documentOfficial · Official issuing agency · 2026-09-03 · Source review 2026-10-16
- Official retained source documentOfficial · Official issuing agency · 2026-09-27 · Source review 2026-10-16
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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