CA AB351

Requires eight specified counties (Del Norte, Humboldt, Lake, Lassen, Modoc, Shasta, Siskiyou, and Trinity) to be annexed to the closest contiguous county organized health system upon approval of both the county and the health system.

Authorizes the Director of Health Care Services to enter into contracts with managed health care plans to provide comprehensive Medi-Cal services to low-income beneficiaries in 27 counties currently on a fee-for-service basis.

Requires managed health care plans to demonstrate experience serving Medi-Cal beneficiaries, partnering with safety net providers, working with local stakeholders, maintaining low administrative costs, and supporting rural care expansion.

Mandates that program costs not exceed what the department would pay for the same services under fee-for-service Medi-Cal and requires quarterly legislative updates from January 1, 2014 through January 1, 2016.

Allows the department to implement regulations through plan letters and bulletins without formal rulemaking, with emergency regulations to be adopted by July 1, 2014.