SB 339 California Senate · 2025-2026 Regular Session

Medi-Cal: laboratory rates.

Summary
Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Existing law prohibits Medi-Cal reimbursement to providers for clinical laboratory or laboratory services from exceeding the lowest of the following: (1) the amount billed; (2) the charge to the general public; (3) 100% of the lowest maximum allowance established by the federal Medicare Program; or (4) a reimbursement rate based on an average of the lowest amount that other payers and other state Medicaid programs are paying. This bill would instead require the above-described Medi-Cal reimbursement to equal the lowest of those metrics. The bill would carve out, from the above-described provision, for dates of service on or after July 1, 2027, or when funding is appropriated to implement this provision, whichever is sooner, Medi-Cal reimbursement to providers for clinical laboratory or laboratory services related to the diagnosis and treatment of sexually transmitted infections, and would apply that threshold but excluding the reimbursement rate described in clause (4) above. The bill would exempt data on those services related to the diagnosis and treatment of sexually transmitted infections from certain data-reporting requirements that are applicable to the reimbursement rate described in clause (4) , for dates of service on or after January 1, 2027, or when funding is appropriated to implement the above-described provision, whichever is sooner. Under existing law, data reports provided to the department pursuant to those data-reporting requirements are confidential and exempt from disclosure under the California Public Records Act. This bill would require the department to make available to the public a dataset, as specified, of the deidentified raw data reported pursuant to the above-described data-reporting requirements by any applicable laboratory service providers that reported a volume greater than 10 tests for the data-collection period. The bill would require the department to publish the associated dataset coincident with publishing updated reimbursement rates. Existing law requires, with exemptions, that payments be reduced by up to 10% for clinical laboratory or laboratory services, in addition to other specified payment reductions under other existing law. This bill would delete that 10% payment reduction.
Bill status failed 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 12, 2025 Last action Feb 2, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

04/09/25 - Amended Senate SB339 · 3 edits
MINOR
The bill changed the Medi-Cal laboratory reimbursement standard from 'shall not exceed' to 'shall equal' the lowest of four rate metrics, meaning the state must now pay exactly that rate rather than having discretion to pay less. It also restructured the carve-out for sexually transmitted infection (STI) lab services, giving them a separate provision with a July 1, 2027 effective date and excluding them from the 'other payers' benchmarking metric, effectively shielding STI testing rates from being driven down by what other insurers pay.
REQUIREMENT

Changed the reimbursement standard in paragraph (3)(A) from 'shall not exceed the lowest of' to 'shall equal the lowest of' the four rate metrics. This removes the state's discretion to pay below the benchmark and requires payment at exactly the lowest applicable rate.

SCOPE

Restructured the STI lab services carve-out. Previously, STI-related services were simply excluded from paragraph (3)(A) with no separate rate provision. Now they have their own subparagraph (B) that applies only for dates of service on or after July 1, 2027 (or when funding is appropriated, whichever is sooner), and uses a 'shall not exceed' standard limited to three metrics (billed amount, public charge, Medicare allowance) while excluding the fourth metric based on what other payers are paying.

TIMELINE

Added a specific effective date of January 1, 2027 (or when funding is appropriated, whichever is sooner) for the data-reporting exemption that applies to STI-related laboratory services, replacing the previous unconditional exemption.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
15
Key actions
5
Committee
5
Amendments
1
May 23, 2025
Upper · Passed
May 23 hearing: Held in committee and under submission.
upper
Apr 30, 2025
Upper · Passed
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 13. Noes 0. Page 939.) (April 29). Re-referred to Com. on APPR.
upper
Apr 24, 2025
Upper · Passed
From committee: Do pass and re-refer to Com. on JUD. (Ayes 11. Noes 0. Page 868.) (April 23). Re-referred to Com. on JUD.
upper
Apr 9, 2025
Upper · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH.
upper
Apr 2, 2025
Upper · Passed
April 2 hearing postponed by committee.
upper
Feb 19, 2025
Committee
Referred to Coms. on HEALTH and JUD.
upper
Feb 12, 2025
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Christopher Cabaldon
Christopher Cabaldon
DDemocratic
CA
3