SB 1252

SB1252:v98#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill

No. 1252

An act to add Chapter 6.7 (commencing with Section 13935) to Part 3 of Division 9 of the Welfare and Institutions Code, relating to health care coverage.

LEGISLATIVE COUNSEL'S DIGEST

SB 1252, as amended, Durazo. Health care coverage. California resident taxpayer health care coverage.

Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. Existing law provides for the regulation of health care service plans by the Department of Managed Health Care and for the regulation of health insurers by the Department of Insurance. The Medi-Cal program is in part governed by, and funded pursuant to, federal Medicaid program provisions.

Existing law sets forth different mechanisms for health care coverage for individuals, including the Medi-Cal program, the federal Medicare Program, an employer-sponsored plan, and a plan through the California Health Benefit Exchange, also known as Covered California. Existing law imposes various taxes on residents, such as sales and use taxes and personal income tax, and authorizes cities and counties to impose local sales and use taxes in conformity with the Sales and Use Tax Law.

This bill would state the intent of the Legislature to enact legislation through which every California resident who pays taxes within the state would be entitled to health care coverage.

This bill would state that every person who is a resident subject to a tax and whose income is at or below 138% of the federal poverty level using the modified adjusted gross income methodology, as specified, is entitled to access to the public health care coverage their tax dollars support. The bill would require the State Department of Health Care Services to ensure that these individuals have access to public health care coverage through programs it administers, including Medi-Cal. To the extent that these provisions would alter the population of beneficiaries for Medi-Cal, the bill would impose a state-mandated local program. The bill would make related findings and declarations.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NOYES

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares all of the following:

(a) California’s gross domestic product (GDP) is larger than the GDP of almost every country in the world, an economy fueled simultaneously by both invention and exploitation of America’s largest low-wage workforce.(b) California has made historic progress toward inclusive access to health care coverage and achieving the lowest uninsured rate in the state’s history.(c) During the COVID-19 pandemic, California included undocumented workers with those we called essential. The pandemic made it clear that the health of every Californian is deeply interconnected.(d) Recent state and federal policy changes threaten to reverse that progress and shift significant health care costs onto counties, public hospitals, and safety-net providers, while excluding Californians from the public programs they fund with their state and local tax contributions.(e) Workers who lose access to preventive and primary care do not lose their health care needs. Instead, they often rely on emergency departments, increasing uncompensated care costs and destabilizing local health systems.(f) Undocumented Californians and other resident taxpayers contribute billions of dollars annually in state and local taxes and play a critical role in California’s essential workforce and strong economy.(g) Ensuring access to health care coverage for California resident taxpayers promotes public health, economic stability, workforce participation, family wellness, and the financial sustainability of the state’s safety-net health system.

SEC. 2.

Chapter 6.7 (commencing with Section 13935) is added to Part 3 of Division 9 of the Welfare and Institutions Code, to read:

CHAPTER 6.7. California Resident Taxpayer Health Care Coverage13935. (a) Every person who is a resident, as defined in subdivision (a) of Section 17014 of the Revenue and Taxation Code, is subject to a tax described in Division 2 (commencing with Section 6001) of the Revenue and Taxation Code, and whose income is at or below 138% of the federal poverty level using the modified adjusted gross income methodology as described in Chapter 7 (commencing with Section 14000), is entitled to access to the public health care coverage their tax dollars support.(b) The State Department of Health Care Services shall implement this chapter by ensuring that the individuals described in subdivision (a) have access to public health care coverage through programs administered by the department, including, but not limited to, Medi-Cal.(c) The department shall take all necessary actions to prevent abrupt loss of health care coverage for the individuals described in subdivision (a) due to federal policy changes, state enrollment freezes, the imposition of premiums, work requirements, or administrative barriers.(d) The department shall implement this chapter in a manner to reduce cost shifts to county indigent care systems and to protect the financial stability of public hospitals and safety-net providers.(e) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department may implement, interpret, or make specific this section by means of all-county letters, plan letters, plan or provider bulletins, or similar instructions until the time any necessary regulations are adopted. The department shall adopt regulations by January 1, 2028, in accordance with the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

SEC. 3. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 4. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

SECTION 1.

It is the intent of the Legislature to enact legislation through which every California resident who pays taxes within the state would be entitled to health care coverage.