CA AB2327

Requires Medi-Cal managed care plan subcontractors (both fully and partially delegated) to be paid actuarially sound rates developed according to generally accepted actuarial principles, effective January 1, 2027

Failure to pay subcontractors actuarially sound rates constitutes an unlawful and unfair business practice under Business and Professions Code Section 17200

Allows subcontractor managed care plans to enforce these payment requirements by filing a notice of dispute with the Department of Health Care Services

Authorizes the department to implement the requirements through plan letters, bulletins, or contract amendments without formal regulatory rulemaking

Defines "downstream fully delegated subcontractor" as one assuming all delegable duties of the primary Medi-Cal managed care plan, and "partially delegated subcontractor" as one assuming only some duties