MedicaidAdministrativeHigh impact
25-727 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
Assembly Bill 3275 requires California health plans to pay claims within 30 calendar days starting January 1, 2026, or face 15% annual interest plus penalties. Claims denial notifications must also be sent within 30 days with specific required information.
Action Required
Before January 1, 2026: Billing team must update claim tracking systems to monitor 30-day payment timelines and identify late payments eligible for 15% annual interest plus penalties (greater of $15 or 10% of accrued interest). Update denial tracking to ensure all incomplete claim notifications include required elements: denial date, member/provider names, specific service, service date, denied amount, member responsibility, and reason for denial. Train staff on new grievance process for payment delays.