AB 2729: Medi-Cal: Employer Responsibility for Medi-Cal Trust Fund.

Official summary

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

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 federal law, Public Law 119-21, enacted on July 4, 2025, sets forth various changes to different health care programs, including certain requirements for Medicaid eligibility with regard to work or community engagement reporting, redeterminations, and cost sharing, among other factors, for certain Medicaid populations pursuant to a specified implementation timeline.

Existing law, the federal Patient Protection and Affordable Care Act, imposes a certain assessment on an applicable large employer, as defined, that offers full-time employees and their dependents the opportunity to enroll in minimum essential coverage, and for whom one or more full-time employees have been certified as having enrolled in a qualified health plan for which a premium tax credit or cost-sharing reduction is allowed or paid.

This bill would create the Employer Responsibility for Medi-Cal Trust Fund to consist of new taxes and deposits, including employer penalties specified in the Budget Act of 2026. The bill would continuously appropriate moneys in the fund to the department to fund the costs of administering the Medi-Cal program in a manner necessary to prevent loss of or to restore health care coverage, benefits, or access to care following the passage of Public Law 119-21 and subsequent state budget actions. The bill would state that these provisions would become operative only if the Medicaid provisions of Public Law 119-21 are not repealed prior to January 1, 2027. By creating a continuously appropriated fund, the bill would make an appropriation.

This bill would declare that it is to take effect immediately as an urgency statute.

Sponsors

Sponsors by party (alphabetical): Democratic 17

“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. May 19, 2026Re-referred to Com. on APPR.
2. May 18, 2026Read second time and amended.
3. May 14, 2026From committee: Amend, and re-refer to Com. on APPR. (Ayes 11. Noes 4.) (May 14).
4. May 6, 2026In committee: Set, first hearing. Referred to APPR. suspense file.
5. April 22, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 3.) (April 21). Re-referred to Com. on APPR.
6. March 23, 2026Re-referred to Com. on HEALTH.
7. March 19, 2026From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.
8. March 19, 2026Referred to Com. on HEALTH.
9. February 21, 2026From printer. May be heard in committee March 23.
10. February 20, 2026Read first time. To print.