California AB 1415: California Health Care Quality and Affordability Act.

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 |Add To My Favorites |Track Bill | Version: 10/11/25 - Chaptered
 09/10/25 - Enrolled
 08/21/25 - Amended Senate
 07/02/25 - Amended Senate
 06/27/25 - Amended Senate
 04/24/25 - Amended Assembly
 02/21/25 - Introduced

 AB-1415 California Health Care Quality and Affordability Act.(2025-2026)

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 Date Published: 10/13/2025 02:00 PM

AB1415:v93#DOCUMENTBill Start

 Assembly Bill

 No. 1415

 CHAPTER 641

An act to amend Sections 127500.2, 127501, and 127507 of, and to add Section 127501.5 to, the Health and Safety Code, relating to health care. 

 [
 Approved by

 Governor
 October 11, 2025.

 Filed with

 Secretary of State
 October 11, 2025.
 ]

LEGISLATIVE COUNSEL'S DIGEST

AB 1415, Bonta.
 California Health Care Quality and Affordability Act.

Existing law, the California Health Care Quality and Affordability Act, establishes within the Department of Health Care Access and Information the Office of Health Care Affordability to analyze the health care market for cost trends and drivers of spending, develop data-informed policies for lowering health care costs for consumers and purchasers, set and enforce cost targets, and create a state strategy for controlling the cost of health care and ensuring affordability for consumers and purchasers. Existing law requires the office to conduct ongoing research and evaluation on payers, fully integrated delivery systems, and providers to determine whether the definitions or other provisions of the act include those entities that significantly affect health care cost, quality, equity, and workforce stability. Existing law defines multiple terms relating to these provisions, including a
 health care entity to mean a payer, provider, or a fully integrated delivery system and a provider to mean specified entities delivering or furnishing health care services.

This bill would update the definitions applying to these provisions, including defining a provider to mean specified entities delivering or furnishing health care services. The bill would include additional definitions, including, but not limited to, a hedge fund to mean a pool of funds managed by investors for the purpose of earning a return on those funds, regardless of strategies used to manage the funds, subject to certain exceptions. The bill would require the office to conduct ongoing research and evaluation on management services organizations, as specified, and to establish requirements for management services organizations to submit data and other information as necessary to carry out the functions of the office.

Existing law requires a health
 care entity to provide the Office of Health Care Affordability with written notice of agreements or transactions that do specified actions, including sell or transfer, among other things, a material amount of its assets to one or more entities.

The bill would similarly require a noticing entity, as defined, to provide the office written notice of agreements or transactions between the noticing entity and a health care entity or management services organization, or an entity that owns, or controls the health care entity or management services organization that perform the same specified actions described above. The bill would additionally require a management services organization to provide the office with written notice of any agreement or transaction between the organization and any other entity.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 NO 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 127500.2 of the Health and Safety Code is amended to read:

127500.2.

 As used in this chapter, the following definitions apply:

(a) (1) “Administrative costs and profits” means the total sum of all expenses not included in the numerator of the medical loss ratio calculation under state or federal law, including, but not limited to, all of the following:

(A) All categories of administrative expenditures.

(B) Net additions to reserves.

(C) Rate dividends or rebates.

(D) Profits or losses.

(E) Taxes and fees.

(2) For purposes of this chapter, “administrative costs and profits” for a fully integrated delivery system means those associated with its nonprofit health care services plan.

(b) “Affordability for consumers” means conside