AB 173: Health.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)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. The Medi-Cal program is in part governed by, and funded pursuant to, federal Medicaid program provisions.

Existing law sets forth qualifications and procedures for the enrollment of providers in the Medi-Cal program, including the completion of a provider agreement and disclosure of certain information as required in federal Medicaid regulations or by the department. Under existing law, failure to disclose the required information, or the disclosure of false information, results in denial of the application for enrollment or makes the provider subject to temporary suspension from the Medi-Cal program, as specified.

This bill would require the department, subject to receipt of necessary federal approvals, to deny an application for enrollment or to terminate the enrollment of a provider if the applicant or provider discloses an affiliation within the previous 5 years with any person or entity that has experienced a disclosable event, as defined, if the department determines that the affiliation poses an undue risk of fraud, waste, or abuse to the Medi‑Cal program. The bill would require the department to apply certain factors set forth in federal regulations for purposes of the risk determination. The bill would authorize the department to take action, regardless of a disclosure, if the affiliation poses the above-described undue risk.

Existing law sets forth various provisions relating to the termination of provisional provider status that is granted to an applicant or provider.

This bill would also apply those provisions to an applicant or provider that is granted preferred provisional provider status or full-enrollment status. The bill would make conforming changes to related provisions. The bill would change existing criteria, and would impose additional criteria, for compliance and grounds for denial, suspension, or termination.

Under existing law, if it is discovered that a provider is under investigation by the department or any state, local, or federal government law enforcement agency for fraud or abuse, the provider is subject to temporary suspension from the Medi-Cal program.

Sponsors

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 18, 2026Chaptered by Secretary of State - Chapter 252, Statutes of 2026.
2. September 18, 2026Approved by the Governor.
3. September 8, 2026Enrolled and presented to the Governor at 3:30 p.m.
4. August 31, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 65. Noes 3. Page 7019.).
5. August 31, 2026Assembly Rule 63 suspended. (Page 7016.)
6. August 31, 2026In Assembly. Concurrence in Senate amendments pending.
7. August 31, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0.).
8. August 31, 2026Read second time. Ordered to third reading.
9. August 31, 2026From committee: Do pass. (Ayes 15. Noes 0.) (August 31).
10. August 28, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.
11. April 2, 2025Referred to Com. on B. & F. R.
12. March 20, 2025In Senate. Read first time. To Com. on RLS. for assignment.