AB 1672 California Assembly · 2025-2026 Regular Session

Medi-Cal: Program of All-Inclusive Care for the Elderly: rates.

Summary

Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services through various delivery systems, including fee-for-service and managed care. The Medi-Cal program is, in part, governed by, and funded pursuant to, federal Medicaid program provisions. Existing law establishes the California Program of All-Inclusive Care for the Elderly (PACE program) to provide community-based, risk-based, and capitated long-term care services as optional services for older individuals under the state's Medi-Cal State Plan and under contracts entered into between the federal Centers for Medicare and Medicaid Services, the department, and PACE organizations. Existing law requires the department to pay capitation rates to health plans participating in the Medi-Cal managed care program using actuarial methods. Existing law requires the department to develop and pay capitation rates to entities contracted pursuant to the PACE program, using actuarial methods consistent with those provisions, with specified exceptions. Existing law requires the department to consult with those contracted entities in developing a rate methodology. This bill would require the department to notify the contracting PACE organization of the proposed rates at least 60 days prior to submission to the federal Centers for Medicare and Medicaid Services (CMS) for approval. The bill would authorize the department to define a reasonable date by which the PACE organization must submit written questions or feedback concerning the proposed rates. The bill would require the department to respond in writing to those questions or feedback by no later than 30 days prior to submitting the rates to CMS.

Issues: ✓ Healthcare

Bill status passed 3 of 5 stages cleared

Introduction

Feb 2026

Committee Review

Jun 2026

Assembly Passage

Apr 2026

Senate Passage

Governor

Introduced Feb 2, 2026 Last action Aug 25, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

08/13/26 - Amended Senate → AB1672 · 4 edits

MODERATE

AB 1672 replaces the existing 'consultation' requirement for PACE rate-setting with a formal 'negotiation' process, explicitly aligned with federal law (42 CFR 460.182(b)). The department must now make a good faith effort to reach agreement with each PACE organization on capitation rates and must provide the rationale for its assumptions and calculations upon request. This gives PACE organizations a stronger procedural role in rate-setting and adds a new transparency obligation.

REQUIREMENT

The department's obligation to 'consult' with PACE organizations in developing a rate methodology is replaced by a requirement that capitation rates be 'negotiated' between the department and each contracting PACE organization, consistent with federal regulation 42 CFR 460.182(b).

The department must make a good faith effort to reach agreement with the contracting PACE organization on capitation rates.

ENFORCEMENT

Upon request by a contracting PACE organization, the department must provide the rationale for any assumptions or calculations concerning proposed rates, including the actual data and methodologies used, the experience-based rate range, and the capitation payment rate for that PACE organization.

TECHNICAL

The notification and feedback process is restructured: the 60-day advance notice requirement is moved to its own paragraph (B), and the feedback deadline and response obligation are moved to a new paragraph (C), with the department's written response now required by no later than 30 days prior to submission to CMS.

Floor votes · Assembly Apr 16, 2026

How they voted

67–0

Passed · 12 other

Total votes 79

Apr 16, 2026

D Democratic59

50 Yea 9

84% Yea

R Republican20

17 Yea 3

85% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Aug 13, 2026

Upper · Passed

Read second time and amended. Ordered returned to second reading.

upper

Aug 13, 2026

Introduced

From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).

upper

Jun 15, 2026

Committee

In committee: Referred to APPR. suspense file.

upper

Jun 4, 2026

Upper · Passed

From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (June 3). Re-referred to Com. on APPR.

upper

May 6, 2026

Committee

Referred to Com. on HEALTH.

upper

Apr 16, 2026

Lower · Passed

Read third time. Passed. Ordered to the Senate. (Ayes 68. Noes 0. Page 4682.)

lower

Apr 8, 2026

Lower · Passed

From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (April 8).

lower

Apr 6, 2026

Committee

Re-referred to Com. on APPR.

lower

Mar 26, 2026

Lower · Passed

Read second time and amended.

lower

Mar 25, 2026

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 16. Noes 0.) (March 24).

lower

Mar 11, 2026

Lower · Passed

In committee: Hearing postponed by committee.

lower

Feb 17, 2026

Committee

Referred to Com. on HEALTH.

lower

Feb 3, 2026

Lower · Passed

From printer. May be heard in committee March 5.

lower

1 primary · 2 co-sponsors