Health care coverage: substance use disorder: residential facilities.

Assembly Member Dixon's legislation directs California health regulators to clarify billing practices for substance use disorder treatment in residential facilities through a coordinated communication initiative. The measure requires the Departments of Managed Health Care, Insurance, and Health Care Services to notify chief financial officers at health plans, insurers, and Medi-Cal managed care organizations that substance use disorder treatments in licensed residential facilities are predominantly nonmedical services, with limited exceptions.

The bill establishes parallel requirements across three regulatory domains, mandating that each department prepare and distribute letters explaining proper billing classifications for residential substance use disorder care. These communications must detail the specific circumstances under which medical treatment is permitted in residential settings. The State Department of Social Services must be consulted in developing the letters' content, while interdepartmental coordination between the three primary regulatory agencies is optional.

The measure's provisions expire on January 1, 2027, creating a defined period for implementing and evaluating this administrative approach to billing oversight. The departments must distribute the required communications by a yet-to-be-specified deadline, using existing resources and administrative frameworks to fulfill the new requirements.