CA AB2427

Authorizes the California Department of Health Care Services to terminate for-profit Medi-Cal managed care plan contracts if the Attorney General determines the plan engaged in anticompetitive conduct under state or federal antitrust law, including the Cartwright Act, Unfair Practices Act, Sherman Antitrust Act, and Clayton Act.

Allows the department to terminate for-profit Medi-Cal managed care plan contracts if the plan has a pattern or practice of not complying with the 85% minimum medical loss ratio requirement established in existing law.

If the department renews or extends a contract with a plan that violated these provisions, the renewal or extension must include provisions addressing noncompliance and contractual remedies to ensure plan accountability.

Specifies that contract nonrenewal under these circumstances does not qualify the applicant for an administrative hearing.

Applies only to new contracts and renewals of existing contracts entered into on or after January 1, 2019.