California AB2594 establishes a pilot program for voluntary employees' beneficiary associations to explore risk-based payment models.

California AB2594 creates a pilot program allowing voluntary employees' beneficiary associations to enter into risk-bearing arrangements with health care providers in southern California. The program aims to compare cost savings, clinical outcomes, and enrollee satisfaction against traditional fee-for-service models. Participants must submit applications to the Department of Managed Health Care, detailing contracts and compliance with financial solvency standards. The pilot runs from January 1, 2022, to January 1, 2031, with an interim report due by January 1, 2029.

California AB2594 establishes a pilot program for voluntary employees' beneficiary associations to explore risk-based payment models.

California AB2594 creates a pilot program allowing voluntary employees' beneficiary associations to enter into risk-bearing arrangements with health care providers in southern California. The program aims to compare cost savings, clinical outcomes, and enrollee satisfaction against traditional fee-for-service models. Participants must submit applications to the Department of Managed Health Care, detailing contracts and compliance with financial solvency standards. The pilot runs from January 1, 2022, to January 1, 2031, with an interim report due by January 1, 2029.