The Source Blog

For 2026, California is in the second year of a two-year legislative session.  And while a significant number of bills have carried over from last year, we are seeing the introduction of new bills for 2026.  With economic uncertainty and reduced federal funds, the state is facing challenges.  However, lawmakers are still pursuing some ambitious goals for this year, with a focus on expanding and protecting coverage, Medi-Cal payments, provider professional practice, and drug regulations.  Below, we look at some of the new legislation introduced in California for 2026 that could be relevant to healthcare costs, competition, and access if enacted.

Expanding and Protecting Coverage

Even amid fiscal uncertainty, the California legislature is still exploring ways to protect and expand healthcare coverage for state residents.  These bills would expand insurance coverage and allocate funding for various medical services.  In light of pending federal government actions and restrictions on access to healthcare, these proposed bills would help patients maintain access to care regardless of insurer or lack of.

AB 1570 - Introduced 1/12/26

This bill would require healthcare plans to provide coverage for screening and diagnostic mammographies, medically necessary diagnostic or supplemental breast examinations, tests for screening or diagnostic purposes, and medically necessary diagnostic breast imaging without imposing cost-sharing requirements, so long as the provider is within the network.  If services are not available within network, the legislation would require plans to arrange for the provision of services to ensure timely access.  Networks would be allowed to impose cost-sharing strategies in this event.

SB 950 - Introduced 2/2/26

If enacted, the legislation requires healthcare plans to cover all medically necessary treatments or medications approved by the U.S. Food and Drug Administration (FDA) for the treatment or slowing of Alzheimer's disease or other dementias.  Insurers would be prohibited from implementing step-therapy protocols as a prerequisite for authorizing coverage unless the FDA has authorized more than one treatment.  Insurers would be allowed to implement expedited processes that allow prescribing providers to obtain authorization for medically necessary treatment.  Medi-Cal managed care plan contracts with the State Department of Health Care Services would be exempt from the bill.

AB 1682 - Introduced 2/2/26

This bill would require both private and Medi-Cal healthcare service and insurance plans to cover scalp cooling treatments when prescribed by a healthcare provider to reduce hair loss.  The bill also specifies that any copayments must be comparable to other oncology supportive care services.

AB 1629 - Introduced 1/26/26

The legislation establishes procedures for patients to obtain out-of-network dental services.  It would require health insurance plans to pay noncontracting dental providers directly for covered services if the noncontracting provider submits to the plan or insurer a written assignment of benefits form signed by an insured patient.  The insurer must provide a predetermination or prior authorization amount to the dental provider and honor that amount unless otherwise indicated.  The insurer must also notify the patient of payment and that it may contribute to their annual or lifetime maximum.  Noncontracting dental providers would be required to make specified disclosures to patients before accepting an assignment of benefits.  The Department of Managed Health Care and the Department of Insurance would be required to review dental provider network programs for compliance and timely access.

SB 912 - Introduced 1/26/26

This bill requires the State Department of Health Care Services to oversee a statewide comprehensive community-based perinatal services program.  The State Department of Public Health would be responsible for enrolling healthcare providers to deliver these services to Medi-Cal patients.  However, the bill would not change the State Department of Health Care Services' authority to implement comprehensive community-based perinatal services for Medi-Cal, nor would it affect the department's role in related contracts, grants, and agreements.

The State Department of Health Care Services would be responsible for developing mandatory training on delivering comprehensive perinatal services and developing a report on the number of pregnant and postpartum patients receiving comprehensive services over the past four years, as well as every three years following implementation.

SB 944 - Introduced 2/2/26

If enacted, this legislation makes acupuncture a standard covered service by eliminating the requirement that federal matching funds be available, thereby allowing access for Medi-Cal patients.

SB 987 - Introduced 2/5/26

This bill would direct the State Department of Health Care Services to establish the Health Access Fund in response to Federal Public Law 119-21, which requires community engagement reporting, redeterminations, cost sharing and creates additional work.  It would be funded by the anticipated decrease in Medi-Cal enrollment due to these requirements.  The proposed Health Access fund would ensure that current Medi-Cal patients can continue to access care and that providers are reimbursed for necessary medical services.

AB 1579 - Introduced 1/13/26

This bill would enable participating entities of the Children's Crisis Continuum Pilot Program that do not have crisis residential programs to use program funds for any part of their continuum of care.  The bill requires that they receive comparable treatment that addresses high acute behavioral needs in a residential setting.

AB 1671- Introduced 2/2/26

The legislation requires the Office of Rural Health to establish a competitive grant program to provide medical services to individuals in rural areas.  Qualified providers can apply annually for grants of up to $10,000 to deliver these services.  The Office of Rural Health would be responsible for establishing and publishing specified criteria eligibility and measurements of outcomes achieved.

MediCal Payments

Although current conditions do not seem ripe for aggressive MediCal expansion, lawmakers are still looking to stabilize the system.  The bills below would increase Medi-Cal payments for certain medical services and optimize cost-negotiation systems to standardize costs and account for inflation.  This would ensure fair compensation for providers and higher access to care for Medi-Cal patients.

AB 1649 - Introduced 1/28/26

This bill would increase the Medi-Cal monthly amount for personal and incidental needs for individuals in medical institutions or nursing facilities, subject to necessary federal approvals.  The bill would also make changes to how income levels for maintenance are calculated for individuals in institutional settings or receiving services from a Program of All-Inclusive Care for the Elderly (PACE) organization and includes provisions for obtaining federal approval and legislative appropriation.

AB 1672 - Introduced 2/2/26

Consultation-related requirements for Medi-Cal payment rate negotiations would be removed under this bill.  Instead, capitation rates would be negotiated between the department and each contracting PACE organization.  The department would be required to respond to any comments from PACE organizations regarding rates, provide a rationale for their calculations, and make a genuine, good-faith effort to reach an agreement.

AB 1717 - Introduced 2/4/26

This bill would increase the reimbursement rate for dentists who provide services to Medi-Cal beneficiaries at their primary residences to account for travel costs.  The bill would require rates to be reviewed and adjusted every two years to account for inflation and to be reported to the Legislature to assess their impact on patient access.  The bill is contingent on federal approval and funding,

Provider Professional Practice Regulations

These bills would introduce new standardized regulations for providers on licensure, liability, and charging practices.  These would reduce administrative costs and prioritize patient access and privacy of their data.

AB 1598 - Introduced 1/16/26

This bill would standardize regulations for various licensed behavioral professionals regarding certification, renewal, and extension timelines.  The bill would also authorize qualified members of other professions, including physicians, nurses, psychologists, attorneys, and religious officials, to provide psychological work consistent with their professions, so long as they do not represent themselves as licensed psychologists.

AB 1637 - Introduced 1/26/26

This legislation imposes sole liability on physicians and surgeons for patient notes, after-visit summaries, diagnoses, and treatment plans.  It prohibits any modifications by anyone other than the authoring physician and surgeon, with criminal charges.

SB 903 - Introduced 1/21/26

This bill would safeguard therapy patients by ensuring services are delivered by qualified, licensed professionals and by limiting the use of AI by mental health professionals.  Licensed professionals would be prohibited from using AI during treatment when sessions are transcribed or recorded, unless the patient is informed of the specific use and consents.  AI usage would also be prohibited when making independent decisions, directly interacting with clients, or generating therapeutic recommendations.  The bill would grant the Department authority to investigate violations and impose civil penalties, and make exceptions for religious counseling, peer support, and self-help materials.

AB 1558 - Introduced 1/8/26

This bill would streamline the process for licensed health and veterinary professionals from other states to volunteer in California during emergencies by establishing criteria for registration systems that verify a volunteer's license and good standing in their home state.

SB 980 - Introduced 2/4/26

Healthcare providers would be prevented from charging fees to complete health-related forms requested by students' schools.

Drug Regulations

Ensuring patients receive the medications they need poses challenges.  These bills would remove administrative burdens on patients accessing prescribed drugs.

AB 1587 - Introduced 1/15/26

If enacted, this bill allows patients to receive prescription drugs for life-threatening conditions in the event they are unable to secure a new prescription for the drug before their supply is exhausted.  The bill would eliminate liability for pharmacies that furnish less than a 30-day supply and have previously filled the patient's prescription.

SB 964 - Introduced 2/3/26

The legislation would authorize licensed healthcare professionals to adjust a patient's dosage amount or frequency without prior authorization, so long as the patient has continuously taken it while covered by their current or previous insurer, it is not a controlled substance, and it has not been adjusted twice without prior authorization.  The bill would not apply to Medi-Cal managed care plans.

Merger Notification

Although most of the bills highlighted in this post are newly introduced, California has enacted a significant item of legislation related to healthcare mergers in 2026.

SB 25 – Enacted 2/10/26

California passed SB25, which imposes pre-merger notification requirements.  This bill requires any company required to file a pre-merger notification under the federal Hart-Scott-Rodino Antitrust Improvements Act to additionally file a copy of the federal form and additional documentary material with the California Attorney General, if California is its principal state of business, or nets 20% of net annual sales in the filing threshold.  The Attorney General would be prohibited from disclosing filed information, but may impose civil penalties for failure to file.

What’s Next

So far for 2026, the California Legislature's policy goals seem to represent a tension between economic challenges and ambitious changes.  How the state will protect healthcare consumers amid changes to the federal landscape presents an interesting challenge, and we will continue to monitor.

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