CA AB342

Authorizes the Department of Health Care Services to continue administering extensions, modifications, or continuations of the Health Care Coverage Initiative approved by federal Centers for Medicare and Medicaid Services.

Requires the department to establish local Coverage Expansion and Enrollment Demonstration (CEED) projects by March 1, 2011, or 180 days after federal approval, whichever is later, to provide health care services to uninsured adults aged 19-64 with incomes up to 133% of the federal poverty level.

CEED projects must be designed to transition eligible individuals to Medi-Cal or California Health Benefit Exchange coverage by 2014 and include elements such as standardized eligibility procedures, medical homes, quality monitoring systems, and consumer assistance.

Prohibits use of state General Fund moneys for CEED project services or administrative costs; participating entities must voluntarily provide the nonfederal share of funding through specified mechanisms including transfers to the newly created CEED Project Fund.

Establishes the CEED Project Fund in the State Treasury with continuously appropriated moneys for department use; allows counties to transfer funds into the account to support CEED projects serving their populations.