MedicaidAdministrativeMedium impact
25-838 Correction for Provider Update 25-728
Health Net·CA·Prior Authorization
Effective date
Jan 1, 2026
We identified it
Jun 20, 2026
Summary
Health Net clarified that penalty payments for late-paid claims under AB 3275 only apply when the insurance plan fails to pay required interest on late claims, not simply when claims are paid late. The penalty is $15 or 10% of accrued interest, whichever is greater, effective January 1, 2026.
Action Required
Before January 1, 2026: Billing team should monitor Health Net Medi-Cal claims for late payments and verify that interest payments are included when claims are paid late. Document any instances where interest is not paid to claim the penalty fee ($15 or 10% of accrued interest). Update accounts receivable processes to track and follow up on penalty payments owed by the plan.