AB 257 California Assembly · 2025-2026 Regular Session

Specialty care networks: telehealth and other virtual services.

Summary
Existing law establishes, under the Medi-Cal program, certain time and distance standards for specified Medi-Cal managed care covered services, consistent with federal regulations relating to network adequacy standards, to ensure that those services, including certain specialty care, are available and accessible to enrollees of Medi-Cal managed care plans in a timely manner. Existing law sets forth other timely access requirements for health care service plans and health insurers, including with regard to referrals to a specialist. Existing law establishes various health professions development programs, within the Department of Health Care Access and Information, for the promotion of education, training, and recruitment of health professionals to address workforce shortage and distribution needs. Existing law sets forth various provisions for the authorized use of telehealth in the delivery of health care services. This bill would, subject to an appropriation, require the California Health and Human Services Agency, in collaboration with the Department of Health Care Access and Information and the State Department of Health Care Services, to establish a demonstration project for a grant program. Under the bill, the grant program would be aimed at facilitating a telehealth and other virtual services specialty care network or networks that are designed to serve patients of safety-net providers consisting of qualifying providers, as defined. Under the bill, the purpose of the demonstration project would be to improve access to specialty care for Medi-Cal beneficiaries through development of a financially sustainable specialty care network or networks that are focused on serving the needs of the health care safety net. The bill would authorize the focus of the project to include increasing access to behavioral and maternal health services and additional specialties prioritized by the agency. The bill would state the intent of the Legislature that implementation of the demonstration project would facilitate compliance with any applicable network adequacy standards. The bill would require the agency to administer the grant program to award grant funds to one or more grantees based on an application process and by meeting specified conditions. The bill would require a grantee to use the funds to develop a network or networks by, among other things, providing health information technology and technical assistance to support both the specialists and any primary care provider care coordination, referral, or electronic consultations. The bill would require the agency to arrange an independent evaluation of the demonstration project. The bill would require the evaluation to examine the extent to which the project was successful in achieving certain objectives, including, among others, reducing structural barriers to access experienced by patients. The bill would require a grantee to report data and information to allow for monitoring and evaluation of the project. The bill would require the agency to ensure that lessons learned, recommendations, and best practices from the project are publicly disseminated to inform the development of a telehealth and specialty care network or networks to serve the needs of the health care safety net.
Bill status failed 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 16, 2025 Last action Feb 2, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

03/27/25 - Amended Assembly AB257 · 8 edits
MODERATE
The amended version significantly restructures the grant program framework for the Equal Access to Specialty Care Everywhere demonstration project. It replaces a simple eligibility threshold of 10 qualifying providers with a formal 'grantee' definition requiring at least 50 qualifying providers, multi-regional presence, and service to multiple insurance populations including Medicare. It also removes the independent evaluation and public dissemination requirements, replacing them with grantee self-evaluation, and simplifies the qualifying provider definition by dropping the 50 percent patient population threshold.
Scope change
The bill's scope broadened in two ways: (1) the target population expanded beyond Medi-Cal beneficiaries to include Medicare enrollees and other federal program participants, and (2) the qualifying provider definition was loosened by removing the 50 percent patient population requirement, potentially bringing more facilities into scope. However, the grantee requirements became substantially stricter with the 50-provider minimum and multi-regional presence requirement.
ELIGIBILITY

The minimum number of qualifying providers an applicant must include increased from at least 10 to at least 50, substantially raising the bar for grant eligibility.

DEFINITION

A new formal definition of 'grantee' was added with five conditions: network of at least 50 qualifying providers serving uninsured, Medi-Cal, expansion population, and Medicare patients; interoperable EHR bidirectional communication; service coordination through HIT tools; capability to evaluate specialty access in underserved communities; and demonstrated record across multiple regions of the state.

The 'qualifying provider' definition was simplified. The old version required both being a specific facility type AND having at least 50 percent uninsured or Medi-Cal patients (or being in a medically underserved area). The new version only requires being a rural health clinic, federally qualified health center, critical access hospital, or community health center, removing the patient population threshold entirely.

SCOPE

The project scope broadened from focusing specifically on Medi-Cal beneficiaries to serving a wider range of populations including those covered by Medicare and other federal health care programs, as reflected in the new grantee definition.

ENFORCEMENT

The requirement for the agency to arrange an independent evaluation of the demonstration project was removed. The old version also required the agency to publicly disseminate lessons learned, recommendations, and best practices; both requirements are absent from the new version.

REQUIREMENT

The old version required the agency to administer a separate grant program with eligibility based on having a provider network and a record of serving underserved communities. The new version makes the grant program an integral part of the demonstration project itself, with eligibility focused on establishing a specialist network and providing health information technology and technical assistance.

FISCAL

The prohibition on using grant funds for payment or reimbursement of patient care services was moved from Section 151103(d) to Section 151102(c), making it a broader funding restriction tied to the demonstration project rather than just the grant program.

TECHNICAL

Language describing workforce shortages was changed from 'shortages of specialists' to 'endemic and growing workforce shortages of specialists,' emphasizing the severity and persistence of the problem.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
10
Key actions
4
Committee
6
Amendments
2
Feb 2, 2026
Lower · Passed
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
lower
May 23, 2025
Lower · Passed
In committee: Held under submission.
lower
Apr 9, 2025
Committee
In committee: Set, first hearing. Referred to APPR. suspense file.
lower
Mar 28, 2025
Committee
Re-referred to Com. on APPR.
lower
Mar 27, 2025
Lower · Passed
Read second time and amended.
lower
Mar 26, 2025
Introduced
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 15. Noes 0.) (March 25).
lower
Feb 10, 2025
Committee
Referred to Com. on HEALTH.
lower
Jan 17, 2025
Lower · Passed
From printer. May be heard in committee February 16.
lower
1 primary · 1 co-sponsor

Sponsors