SB-363
Health & Public Health

Health care coverage: independent medical review.

Engrossed
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • Requires health plans to report all treatment denials and modifications to state regulators starting June 2026.
  • Imposes penalties up to $500,000 on plans that have over 50% of their treatment denials overturned on appeal.
  • Creates new oversight funds to monitor health plan denials and track appeal outcomes.
  • Mandates annual public reporting of denial rates and appeal decisions by state regulators.

Summary

Senator Wiener's health care accountability legislation establishes new reporting requirements and financial penalties for California health insurers and service plans with high rates of overturned treatment denials. The measure requires annual reporting of all claims processed, treatment denials, and modifications, categorized by type of care and diagnosis, beginning June 2026.

Under the bill's provisions, insurers and plans must face administrative penalties when more than 50% of their independent medical reviews in any care category result in reversed decisions, applicable to entities with 10 or more reviews annually. Penalties start at $25,000 for first violations, escalate to $50,000-$200,000 for second violations, and reach $500,000 for subsequent infractions. The penalty amounts adjust every five years based on medical care cost inflation beginning in 2031.

The legislation creates dedicated accounts within state funds to collect these penalties - the Managed Care Independent Medical Review Administrative Penalties Subaccount and the Health Insurance Independent Medical Review Administrative Penalties Fund. Upon legislative appropriation, these funds may cover implementation costs and other specified purposes. Both the Department of Managed Health Care and Department of Insurance must analyze the reported data and include findings in their annual reports starting in 2028.

Key Dates

Next Step
Referred to the Assembly Standing Committee on Appropriations
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Appropriations
Hearing scheduled for , 1021 O Street, Room 1100
Assembly Health Hearing
Assembly Committee
Assembly Health Hearing
Do pass as amended and be re-referred to the Committee on [Appropriations]
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB363 Wiener et al
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Do pass as amended
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Health Hearing
Senate Committee
Senate Health Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Contacts

Profile
Scott WienerD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Josh BeckerD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Dave CorteseD
Senator
Bill Author
Not Contacted
Not Contacted
0 of 20 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Scott WienerD
Senator
Bill Author
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Josh BeckerD
Senator
Bill Author
Profile
Dave CorteseD
Senator
Bill Author
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Akilah Weber PiersonD
Senator
Bill Author
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Pilar SchiavoD
Assemblymember
Bill Author
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Jessica CalozaD
Assemblymember
Committee Member
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
Heather HadwickR
Assemblymember
Committee Member
Profile
Jose SolacheD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member

Similar Past Legislation

Bill NumberTitleIntroduced DateStatusLink to Bill
SB-294
Health care coverage: independent medical review.
February 2023
Failed
SB-238
Health care coverage: independent medical review.
January 2023
Failed
Showing 2 of 2 items
Page 1 of 1

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Scott Wiener
Scott WienerD
California State Senator
Co-Authors
Josh Becker
Josh BeckerD
California State Senator
Dave Cortese
Dave CorteseD
California State Senator
Pilar Schiavo
Pilar SchiavoD
California State Assembly Member
Akilah Weber Pierson
Akilah Weber PiersonD
California State Senator
40% progression
Bill has passed all readings in its first house and is ready to move to the other house (5/28/2025)

Latest Voting History

July 15, 2025
PASS
Assembly Committee
Assembly Health Hearing
AyesNoesNVRTotalResult
130316PASS

Key Takeaways

  • Requires health plans to report all treatment denials and modifications to state regulators starting June 2026.
  • Imposes penalties up to $500,000 on plans that have over 50% of their treatment denials overturned on appeal.
  • Creates new oversight funds to monitor health plan denials and track appeal outcomes.
  • Mandates annual public reporting of denial rates and appeal decisions by state regulators.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Scott Wiener
Scott WienerD
California State Senator
Co-Authors
Josh Becker
Josh BeckerD
California State Senator
Dave Cortese
Dave CorteseD
California State Senator
Pilar Schiavo
Pilar SchiavoD
California State Assembly Member
Akilah Weber Pierson
Akilah Weber PiersonD
California State Senator

Summary

Senator Wiener's health care accountability legislation establishes new reporting requirements and financial penalties for California health insurers and service plans with high rates of overturned treatment denials. The measure requires annual reporting of all claims processed, treatment denials, and modifications, categorized by type of care and diagnosis, beginning June 2026.

Under the bill's provisions, insurers and plans must face administrative penalties when more than 50% of their independent medical reviews in any care category result in reversed decisions, applicable to entities with 10 or more reviews annually. Penalties start at $25,000 for first violations, escalate to $50,000-$200,000 for second violations, and reach $500,000 for subsequent infractions. The penalty amounts adjust every five years based on medical care cost inflation beginning in 2031.

The legislation creates dedicated accounts within state funds to collect these penalties - the Managed Care Independent Medical Review Administrative Penalties Subaccount and the Health Insurance Independent Medical Review Administrative Penalties Fund. Upon legislative appropriation, these funds may cover implementation costs and other specified purposes. Both the Department of Managed Health Care and Department of Insurance must analyze the reported data and include findings in their annual reports starting in 2028.

40% progression
Bill has passed all readings in its first house and is ready to move to the other house (5/28/2025)

Key Dates

Next Step
Referred to the Assembly Standing Committee on Appropriations
Next Step
Assembly Committee
Referred to the Assembly Standing Committee on Appropriations
Hearing scheduled for , 1021 O Street, Room 1100
Assembly Health Hearing
Assembly Committee
Assembly Health Hearing
Do pass as amended and be re-referred to the Committee on [Appropriations]
Vote on Senate Floor
Senate Floor
Vote on Senate Floor
Senate 3rd Reading SB363 Wiener et al
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Do pass as amended
Senate Appropriations Hearing
Senate Committee
Senate Appropriations Hearing
Placed on suspense file
Senate Health Hearing
Senate Committee
Senate Health Hearing
Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Latest Voting History

July 15, 2025
PASS
Assembly Committee
Assembly Health Hearing
AyesNoesNVRTotalResult
130316PASS

Contacts

Profile
Scott WienerD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Buffy WicksD
Assemblymember
Committee Member
Not Contacted
Not Contacted
Profile
Josh BeckerD
Senator
Bill Author
Not Contacted
Not Contacted
Profile
Dave CorteseD
Senator
Bill Author
Not Contacted
Not Contacted
0 of 20 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Scott WienerD
Senator
Bill Author
Profile
Joaquin ArambulaD
Assemblymember
Committee Member
Profile
Buffy WicksD
Assemblymember
Committee Member
Profile
Josh BeckerD
Senator
Bill Author
Profile
Dave CorteseD
Senator
Bill Author
Profile
Lisa CalderonD
Assemblymember
Committee Member
Profile
Akilah Weber PiersonD
Senator
Bill Author
Profile
Mike FongD
Assemblymember
Committee Member
Profile
Diane DixonR
Assemblymember
Committee Member
Profile
Gregg HartD
Assemblymember
Committee Member
Profile
Blanca PachecoD
Assemblymember
Committee Member
Profile
Gail PellerinD
Assemblymember
Committee Member
Profile
Kate SanchezR
Assemblymember
Committee Member
Profile
Pilar SchiavoD
Assemblymember
Bill Author
Profile
Tri TaR
Assemblymember
Committee Member
Profile
Jessica CalozaD
Assemblymember
Committee Member
Profile
Mark GonzalezD
Assemblymember
Committee Member
Profile
Heather HadwickR
Assemblymember
Committee Member
Profile
Jose SolacheD
Assemblymember
Committee Member
Profile
Sade ElhawaryD
Assemblymember
Committee Member

Similar Past Legislation

Bill NumberTitleIntroduced DateStatusLink to Bill
SB-294
Health care coverage: independent medical review.
February 2023
Failed
SB-238
Health care coverage: independent medical review.
January 2023
Failed
Showing 2 of 2 items
Page 1 of 1