California Assembly Bill AB1415

California 2025-2026 Regular Session

• Introduced: 2/21/25
• Refer: 3/13/25

Caption

California Health Care Quality and Affordability Act.

Impact

One of the critical changes proposed by AB 1415 is the inclusion of 'management services organizations' under the definition of health care entities within California law. This amendment broadens the scope of regulations concerning health care operations. Additionally, the bill introduces requirements for private equity firms and hedge funds to notify the Office of Health Care Affordability regarding transactions that involve significant assets of health care entities. This step aims to increase oversight and transparency of financial entities involved in health care operations.

Summary

Assembly Bill 1415, also known as the California Health Care Quality and Affordability Act, is a legislative measure aimed at amending the Health and Safety Code of California to improve health care affordability and quality. The bill establishes the Office of Health Care Affordability within the Department of Health Care Access and Information. Its purpose is to analyze health care market trends and costs, develop data-informed policies to lower health care expenditures for consumers and purchasers, and set enforceable cost targets to ensure affordable health care access for all Californians.

Contention

The bill has faced some contention from various stakeholders in the health care sector. Proponents advocate for stronger regulations and greater transparency regarding financial dealings in health care, emphasizing that it can lead to better affordability and consumer protection. In contrast, opponents argue that increased regulatory burdens could stifle competition and limit operational flexibility for health care providers and financial investors. The balance between oversight and operational liberty remains a significant point of discussion as AB 1415 progresses through the legislative process.