MedicaidAdministrativeMedium impact
25-728 Claims Will Be Paid Faster Thanks to New California Law
Health Net·CA·Prior Authorization
Effective date
Jan 1, 2026
We identified it
Jun 20, 2026
Summary
California Assembly Bill 3275 establishes new requirements starting January 1, 2026, mandating that claims must be paid within 30 calendar days or incur 15% annual interest plus penalties. PPGs and hospitals must notify providers of incomplete claims within 30 days with specific denial information.
Action Required
Before January 1, 2026: Billing team must update claim tracking systems to monitor 30-day payment timelines and establish processes to calculate 15% annual interest on late payments. Review and update denial notice templates to include required elements (member name, provider name, specific service, dates, amounts, and appeal information). Train staff on new grievance process requirements for payment delays.