Transcript Highlights:

• Just so I understand, this legislation requires no co-payment of gender transition treatment, is that
• Direct payment is one of the primary reasons dentists choose to stay in-network or join a network.
• Direct payment is one of the primary reasons dentists choose to stay in network or join a network.
• One of the primary reasons for rejoining a network is direct payment.
• And so it does make it harder when the network doesn’t allow for direct payment for that allowance.

Committee: House Health

Transcript Highlights:

• pro rata payments.
• pro rata payments.
• pro rata payments.
• pro rata payments.
• Payments and making and not allowing pro rata payments.

Transcript Highlights:

• Next up, we'll have Representative Black with HB 1231, Insurance Claims Payments to Physicians.
• Will payments in the form of gold and silver be accepted? Representative, you are recognized.
• That leaves us no viable option but to accept these costly payment methods.
• That leaves us no viable option but to accept these costly payment methods.
• Approved claims only to later rescind payment.

Summary: The committee met to hear five banking and insurance-related bills. HB 1549, an Office of Financial Regulation agency bill to help more efficiently regulate financial institutions, was amended to match Senate companion language and then passed unanimously. HB 1231 would extend physician payment and prior-authorization protections similar to a prior dental law, including limits on virtual credit card payments as the sole payment method; physicians and medical groups supported it as a way to reduce fees and retroactive denials, while insurers were not heard in opposition, and the bill passed unanimously. The committee then heard HB 999, which would make gold and silver legal tender and allow transactions in bullion through electronic debit mechanisms. The sponsor and several proponents framed it as an inflation hedge and economic freedom measure, while questions focused on definitions, transaction costs, and vendor participation. The bill passed on a mostly party-line vote, with one member voting no. The committee also approved HM 4363, a memorial urging Congress to establish a sovereign wealth fund; the sponsor described it as a way to steward national wealth, and the memorial passed with one dissenting vote. Finally, the committee took up HB 1551, which would create a prevailing-party attorney fee framework in insurance contract disputes. The sponsor argued it would restore balance, deter meritless litigation, and help consumers with valid claims recover fees, while insurers, business groups, and defense attorneys warned it would revive one-way fee shifting, increase litigation, and raise premiums. Consumer advocates and some members supported it as necessary to give policyholders meaningful recourse. After debate, the bill passed favorably, with one member voting no.

Transcript Highlights:

• Some of the other cost pressures Working on include costs to maintain our multiple eligibility payment
• For a 10% payment increase by expanding the access equity areas to include tribally licensed programs
• We have processed about $2 million on average each week in payments.
• Is it like a monthly payment? Is it an annual payment? Just a little bit more.
• I think I heard that the United Way facilities... payments in an earlier testimony.

Bills: HF2436 , HF470 , HF2643 , HF2456 , HF102 , HF1367

Committee: House Children and Families Finance and Policy

Transcript Highlights:

• CDSS issues quarterly cost of care plus payments to contractors so that they can make their timely payments
• And if we do, for example, have to make an early payment to make a, To make those payments.
• And if we do, for example, have to make an early payment to make sure that Cost of Care Plus payments
• So at least that first payment is for services rendered in 2025-26.
• So that first payment is for June.

Transcript Highlights:

• </c> payment withholds. payment withholds.
• The last recovering overp payments.
• </c> national average in improper payment national average in improper payment rates.<00:48:10.480><c
• </c> stopped payment on? That would be great. stopped payment on? That would be great.
• </c> benefits and provider payment. benefits and provider payment.

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• These are not fees on normal ACH payments.
• It requires the holder to maintain an option for the buyer to make an ACH payment without incurring a
• It distinguishes an ACH payment from other types of electronic payments. That is the amendment.
• So let's just say if the auto payment is $500 and you're at three percent, now you're looking at a $15
• And your payment is due on the 15th, and all of a sudden it is the 15th, you haven't mailed your payment

Transcript Highlights:

• And then directed payments are ways that the state can direct payments And they effectively function
• like supplemental payments.
• And then the directed payments are ways that the state can direct payments through the managed care system
• those payments more quickly.
• We are going to see pressure on state-directed payments.

Summary: The Assembly Budget Subcommittee on Health began with a hearing on the impacts of H.R. 1 on California health programs, focusing first on reproductive health state investments. HCAI outlined five state-funded reproductive health programs created after Dobbs, including uncompensated care, practical support, capital and clinical infrastructure, and workforce programs. Essential Access Health and Planned Parenthood testified that these funds have served hundreds of thousands of patients, but warned that the uncompensated care program is fully awarded and needs renewal, and that Title X and Medicaid-related federal uncertainty continues to threaten access. Members questioned who the uncompensated care program serves, why Medi-Cal covers a large share of abortions, and whether Planned Parenthood could expand prenatal services; public commenters urged continued support for reproductive health access. The committee then took up long-term care services and supports, starting with the HCBA and Assisted Living Waiver programs. DHCS reported large wait lists for both programs and said enrollment is limited by workforce and provider capacity, while LAO noted that increasing slots alone may not increase access without additional programmatic changes. Members pressed the department on whether more slots should be added given the lower cost of home- and community-based care compared with skilled nursing facilities, and public testimony argued that the wait lists should be reduced and that staffing concerns do not fully explain unused capacity. The committee also heard testimony on congregate living health facilities, where providers and a patient family described the homes as critical, lower-cost alternatives to nursing facilities for younger, medically complex people. Witnesses requested short-term bridge funding, while DHCS said it is proposing to transition CLFs into a managed care benefit by January 1, 2028, which would remove caps and expand access statewide. The final long-term care topic was PACE. DHCS explained that it has paused new PACE applications and service expansions for at least two years to reassess oversight capacity and develop a statewide strategic growth framework, while existing programs continue operating. CalPACE supported the pause as a planning measure but asked for four additional state nurse positions to reduce delays in level-of-care determinations and speed enrollment for frail older adults. Members shared personal stories about how PACE has helped family members and asked how the state will meet growing demand; DHCS said stakeholder engagement will begin later in the year and that some existing applications already in process will continue. Public commenters broadly supported PACE, HCBA, and CLF funding requests. The hearing then moved to the Department of Health Care Services’ 2026-27 Medi-Cal budget and related trailer bills. DHCS said Medi-Cal spending has grown due to coverage expansions, higher acuity, rising utilization, and especially pharmacy costs, and it described proposals to extend the current skilled nursing facility financing framework for one year while the state develops a new value-based payment strategy. LAO said most recent Medi-Cal spending growth has been driven more by higher per-enrollee costs than by caseload growth, with pharmacy spending growing especially quickly, and recommended better and more timely data to analyze the drivers. Members expressed concern about the rapid rise in Medi-Cal spending and asked for more detail on the largest cost increases.

Transcript Highlights:

• with other child care payments.
• payments on top of our prior reimbursement rates.
• rate levels while adhering to the cost-of-care-plus regional payment structure.
• But we are generally making timely payments to providers.
• But we are generally making timely payments to providers. Dr.

Summary: The Assembly Budget Subcommittees on early childhood education heard a broad review of the Governor’s child care and preschool budget proposals, with testimony from the Department of Finance, the Department of Social Services (CDSS), the California Department of Education (CDE), and the Legislative Analyst’s Office (LAO). The main topics were cost-of-care-plus and COLA adjustments, the California State Preschool Program, child care slot reductions tied to federal and Proposition 64 funding changes, disaster recovery grants for child care facilities, trailer bill proposals on family fees and absences, prospective pay, and several budget change proposals for departmental staffing and licensing. Officials also discussed the state’s transition toward an alternative methodology for setting rates based on the true cost of care. On rate reform, CDSS and CDE said the current reimbursement system remains below the alternative methodology in many counties and that providers continue to struggle with recruitment and retention. The LAO recommended aligning cost-of-care-plus increases across provider types, while CDE urged that any COLA be added to base rates rather than cost-of-care-plus payments because providers view the latter as less ongoing. CDSS said the next alternative methodology update will be developed with a contractor during fiscal year 2026-27, with public engagement and legislative input, and estimated that fully transitioning to rates informed by the methodology would take about 24 months once policy and funding are in place. CDSS also said the direct-service cost of care under the methodology was estimated at about $18.7 billion in a July 2025 report. A major point of contention was the proposed reduction of 4,167 child care slots due to lower federal CCDF funding and reduced Proposition 64 revenue. CDSS said it expects to absorb the reduction through unspent funds and relinquishments so currently enrolled children are not disrupted, while the LAO supported the reduction as a way to avoid worsening the structural deficit. Members strongly objected to the slot cuts, arguing the administration has repeatedly proposed reductions after prior budget agreements and emphasizing the economic and family benefits of child care. The committee also discussed preschool enrollment trends, including growth in three-year-old enrollment and a sharp increase in two-year-olds served under a temporary provision, with CDE warning that the temporary two-year-old authority expires in 2027. The committee also reviewed an $11.5 million Proposition 64 proposal for child care infrastructure grants for facilities impacted by 2025 state disasters, especially the Los Angeles fires, and members asked for trailer bill language to make the funds flexible for repairs, equipment, insurance, and permitting. On trailer bill items, the panel discussed codifying family fee reimbursement rules, defining excessive unexplained absences to allow disenrollment after prolonged nonuse, and expanding temporary provider absences; CDSS said the absence policy is meant to mirror federal CCDF rules, while CDE said it is already pursuing its own rulemaking. The hearing also covered prospective pay, with CDSS and CDE saying they are waiting for final federal guidance before moving ahead; LAO said the state could save ongoing costs if the federal requirement is rescinded. Finally, the committee reviewed staffing and support budget requests for CDSS and other implementation items, and held several items open for further discussion before the May Revision. Public comment overwhelmingly urged full funding for child care slots, true cost-of-care payments, and ongoing support for early education programs and county offices of education.

Transcript Highlights:

• </c> payment methodology. payment methodology.
• </c> payment program. payment program.
• If that hospital does not receive payments under the hospital directed payment program, which was also
• under the hospital directed payments under the hospital directed payment<00:31:44.840><c> program,</
• </c><01:01:49.680><c> heard,</c><01:01:50.040><c> is</c> payment program, as you've heard, is payment

Committee: Senate Health and Human Services

Transcript Highlights:

• And so we've corrected that. collects all those payments and makes all those deposits.
• And apparently those payments for those bags were being received.
• two extra payments each year.
• two extra payments each year.
• I was just thinking, as many of you know, our state has gone from 24 payments a year to 26 payments a

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee began with prayer and approval of the January 8 minutes, then received updates on delinquent private water and sewer reports. Staff reported that for the 2022 reports, 19 of 43 entities had had their turnback reinstated, while 24 remained in escrow; for the 2023 reports, 59 of 64 entities had filed, leaving five outstanding. The committee also filed a report on Adona, where staff said the city had made enough progress toward substantial compliance with municipal accounting laws to discontinue withholding turnback, and the committee adopted that recommendation. The bulk of the meeting focused on municipal accounting noncompliance cases. Gum Springs and Denning were presented with extensive repeat findings involving budgets not adopted by ordinance or resolution, missing or incomplete bank reconciliations, inadequate receipts and disbursement records, payroll issues, and improper handling of Act 833 funds or other city money. Both cities’ mayors and recorders-treasurers testified about efforts to correct records, obtain training, and work with the Municipal League; the committee voted to start the 60-day turnback-withholding clock for both and then filed the reports. Fargo was deferred because no city representative was present. Additional reports included Green Forest, Elaine, Strong, Brooklyn, Mineral Springs, Rondo, Waldo, Columbia County, and several private water and sewer entities. Strong drew significant concern over missing garbage-bag revenue, improper fund transfers, and deficit balances; the committee deferred that report to the March meeting. The committee also heard investigative or referred reports on the Faulkner County Fair Association, Brooklyn payroll direct-deposit fraud, and other entities with questionable disbursements or recordkeeping. In several cases, staff recommended filing the reports after responses were received; in others, the committee deferred action when responses were lacking or representatives were absent. The meeting ended with a motion to defer a Cross County Rural Water matter so the entity could appear at the next meeting.

Transcript Highlights:

• So ramp is by late payment charges.
• </c><01:13:49.120><c> charges</c> want to eliminate late payment charges want to eliminate late payment
• They payment charges is the right level.
• </c> on the cold weather rule and payment on the cold weather rule and payment assistant<01:15:42.880
• provides the payment Centerpoint provides the payment assistance<01:15:46.159><c> program</c><01:15:

Bills: HF3458 , HF3777 , HF3778 , HF3912

Committee: House Energy Finance and Policy

Keywords: electric utilities, service areas, Tribal lands, Minnesota statute, energy regulation, utility rates, public utilities, Public Utilities Commission, PUC, ratepayer, consumer protection, affordable energy, energy affordability, ability to pay, just and reasonable rates, rate regulation, electric rates, natural gas rates, energy conservation, renewable energy

Transcript Highlights:

• DCYF must adopt rules that allow child care providers to accept state subsidy payment to claim a full
• month of payment only if the child is absent for 10 or fewer days in a month.
• If a child is absent for 11 days or more, the provider will receive a half month of payment.
• In addition, prospective and enrollment-based payments are eliminated.
• In addition, perspective, and enrollment-based payments are eliminated.

Bills: HB2689 , SB5832 , SB5922 , SB5944 , SB5988 , SB6151

Committee: House Appropriations

Keywords: Working Connections Child Care, child care subsidy, subsidized child care, Washington DCYF, Department of Children, Youth, and Families, low-income families, child care providers, licensed child care centers, family child care, market rate survey, subsidy rates, income eligibility, state median income, SNAP, Basic Food, collective bargaining, provider reimbursement, daily payment, half-day care, partial-day care

Transcript Highlights:

• , missed car payments.
• </c><00:13:08.399><c> Miss</c><00:13:08.720><c> car</c><00:13:08.959><c> payments</c><00:13:09.519><c
• > it</c> missed rent payment Miss car payments it missed rent payment Miss car payments it was<00:13:
• My understanding is that our accounting Central Payroll processes payment, but the processing of the
• </c><00:27:44.640><c> of</c> and state law that governs payment of and state law that governs payment

Committee: Senate Labor and Technology

Summary: The Committee on Labor and Technology heard several labor-related measures. SB 183 would allow arbitration to resolve disputes over state and county contributions to the EUTF benefits trust fund; labor groups supported it, and the committee advanced it with amendments. SB 185, concerning indebtedness to the state, drew support from unions and discussion with DAGS about tiered repayment options for lower-paid employees; DAGS said the system could be programmed to accommodate the bill, and the measure was also advanced with amendments. SB 458 would expand the definition of employer for wage-payment laws to include the state and counties when no comparable public-employee provision exists; HSTA testified in support, citing repeated delayed pay for teachers, while DAGS and county representatives raised operational concerns. The committee deferred SB 458 for further administrative work. SB 425, on qualified community rehabilitation programs and the aggregate contract cap, was advanced with technical amendments after UPW said employers were splitting contracts to exceed the statutory threshold. The committee also considered SB 1287, which would apply unfair and deceptive practices law to tipped food and beverage establishments and require tip-pool signage with wage-division contact information. The Attorney General’s office recommended a savings clause to avoid retroactive application issues, and the committee passed the bill with amendments. SB 1660 would require hospitality employers to adopt anti-harassment measures, training, panic buttons, and anti-retaliation protections; the Commission on the Status of Women and worker advocates supported it, while DLIR noted existing complaint systems and the need for rulemaking. The committee adopted amendments incorporating sexual assault hotline information, panic-button guidance, and employer flexibility on translation languages, then passed the bill with amendments. SB 631, relating to the Department of Human Resources Development, was deferred, with the chair noting a prior law already allows departments to screen and select applicants from initial pools.

Transcript Highlights:

• been approved for subsidy attends at least one day in the calendar month, the provider may claim payment
• DCYF must adopt rules that allow child care providers to accept state subsidy payment to claim a full
• month of payment only if the child is absent for 10 or fewer days in a month.
• If a child is absent for 11 days or more, the provider will receive a half month of payment.
• In addition, prospective and enrollment-based payments are eliminated.

Summary: The House Appropriations Committee held a public hearing on a series of bills, beginning with House Bill 2689 on Working Connections Child Care. Staff explained that the proposed substitute would keep eligibility at 60% of state median income, eliminate scheduled expansions to 75% and 85%, reduce future subsidy rates from the 85th to the 75th percentile of market, end enhanced regional rates, and change reimbursement rules from prospective enrollment-based payments back to attendance-based payments with a reduced monthly payment after 11 absent days. Child care advocates thanked the committee for removing the proposed cap on the program but opposed the cuts to provider rates and eligibility expansions, warning of harm to families and providers. The committee then heard Engrossed Substitute Senate Bill 5124 on Medicaid network adequacy for post-acute care, with staff noting administrative costs and indeterminate fiscal effects; hospitals supported the bill as a way to reduce discharge delays and reliance on single-case agreements. Senate Bill 5832, which would raise the new motor vehicle arbitration fee from $3 to $6 to support the Lemon Law arbitration program, drew support from the Attorney General’s Office and auto dealers, who said the fee had not been updated since 1995 and the program was underfunded. The committee also heard Substitute Senate Bill 5862, providing a one-time 3% COLA for certain PERS 1 and TRS 1 retirees, with retirees testifying in favor and local government representatives warning about added employer costs. The committee next heard Senate Bill 5922, allowing school districts to transfer money from the Transportation Vehicle Fund to other funds if they reduce their fleet and receive OSPI approval; staff said the bill would mainly add administrative work for OSPI, and no one testified. Substitute Senate Bill 5923 would allow a hospital on an island in Skagit County to qualify as a critical access hospital if federally certified; Island Health testified that the designation would help sustain rural services, and a committee member asked about bed count and Medicaid/charity-care pressures. Senate Bill 5944 would require language access providers to bargain over compensation for missed or canceled appointments and clarify that statutes prevail over conflicting contract terms; WFSE supported the bill, saying it would equalize bargaining rights across agencies. Substitute Senate Bill 5972 would extend interest arbitration rights to correctional employees in city and county jails regardless of population size; labor supported the bill as a retention tool, while cities and counties opposed it, arguing it would raise costs and should include ability-to-pay protections. The committee also heard Senate Bill 5988, authorizing the Department of Health to continue accrediting opioid treatment programs and charge accreditation fees, which DOH said was needed to avoid winding down the program. Later, the committee heard Senate Bill 6151, which would move Ecology fee revenues for landfill methane emissions and laboratory accreditation into dedicated accounts; Ecology supported the bill as improving transparency and reinvesting fees into the programs, and staff said the lab fee shift would be offset by a related budget action. Engrossed Substitute Senate Bill 6194 would pay a rural hospital on a federally recognized Indian reservation, specifically Astria Toppenish, at 150% of the Medicaid fee-for-service rate beginning in 2027; hospital leaders and community members testified that the hospital serves a high-Medicaid, rural, and tribal population and faces persistent losses. Finally, Engrossed Substitute Senate Bill 6302 would direct L&I to investigate possible misclassification of independent contractors on public works projects involving multiple workers doing the same finishing work; labor and business representatives both described it as a negotiated compromise to address underground economy abuses. The committee took no final votes during the hearing and ended by reiterating amendment deadlines for bills scheduled for executive session.

Transcript Highlights:

• A declining student enrollment payment.
• We create a monthly system, a monthly payment system.
• And during that period of time, they receive a quarterly payment.
• They re CRA monthly payment, rather, they receive frontloaded monthly payments and that money goes into
• I do have a question when it comes to the monthly payments, if in a while the monthly payments or be

Transcript Highlights:

• My point is that payment methods, and the...
• and the timing of payments coming in.
• and the timing of payments coming in.
• We’ve been talking about just the payments going out.
• The payments going out.

Committee: Senate State Affairs

Transcript Highlights:

• that</c><00:09:52.000><c> sort</c> payments or partial payments, that sort payments or partial payments
• and then payments weren't made?
• ><c> eligibility,</c> payments for accuracy, eligibility, payments for accuracy, eligibility, timeliness
• And so if ever we get a payments.
• </c> was not, we would not make that payment. was not, we would not make that payment.

Bills: HF3217 , HF2252

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Keywords: bioindustrial facilities, economic development, renewable energy, advanced biofuels, state funding, HF2252, Minnesota bonding, volume cap, private activity bonds, tax-exempt bonds, public facility bonds, public facilities pool, unified pool, bond allocation, municipal finance, bond cap, housing bonds, residential rental projects, manufacturing bonds, enterprise zone bonds

Transcript Highlights:

• </c> or forces a pharmacy to accept payment or forces a pharmacy to accept payment less<01:13:54.400>
• </c> Directed payment programs are not new. Directed payment programs are not new.
• <01:41:59.920><c> to</c><01:42:00.080><c> a</c> payment to a payment to a hospital.<01:42:01.840><c>
• </c><01:43:57.520><c> to</c> payment through the directed payment to payment through the directed payment
• That gets paid as a separate payment term along with the capitation payments to hospitals.

Committee: Senate Health and Human Services

Transcript Highlights:

• </c> try to come back in later um payment try to come back in later um payment suspensions<00:12:59.320
• </c> and we conduct both pre and post-payment and we conduct both pre and post-payment audits<00:15:14.920
• </c><00:28:03.200><c> for</c> we are required to suspend payment for we are required to suspend payment
• </c> type then we would not suspend payment type then we would not suspend payment um<00:28:19.320><c
• </c><00:28:32.679><c> until</c> then we do not um suspend payment until then we do not um suspend payment

Summary: The subcommittee met to review the Department for Medicaid Services’ program integrity work. Commissioner Lisa Lee and Program Integrity Director Jennifer Dudinsky outlined Kentucky Medicaid’s structure, funding, enrollment, and spending, including FMAP rates, the size of the Medicaid and KCHIP populations, the number of providers, and 2024 expenditures. They also described the managed care and fee-for-service populations, noting that managed care serves most members while fee-for-service is concentrated in long-term care and waiver populations. Most of the discussion focused on fraud, waste, abuse prevention, and provider oversight. The department described its provider enrollment and certification checks, revalidation requirements, site reviews, fingerprinting for some high-risk providers, and termination grounds such as false application information, Medicare actions, unreported ownership changes, and abandonment of a provider number. Members asked about nonprofit ownership reporting, MCO fraud oversight, and how the department tracks unusual CPT code utilization, especially in behavioral health. The department said it uses data analytics, audits, policy review, and collaboration with behavioral health staff to monitor those trends. Dudinsky explained the division’s four branches: provider licensing and certification, audits and compliance, recovery, and third-party liability/estate recovery. She described prepayment and postpayment audits, referrals of credible fraud allegations to the Attorney General, monthly meetings with the AG’s office, and coordination with the Office of Inspector General, CMS, HHS OIG, MCOs, and other partners. She also explained payment suspensions, stand-downs during law enforcement investigations, and recovery efforts for overpayments, provider/member fraud, and third-party liability. The department said its recovery and avoidance efforts produced more than $251 million in savings so far in 2025. No votes or formal actions beyond approving the minutes were taken.