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AB-877 • 2026

Health care coverage: substance use disorder: residential facilities.

Health care coverage: substance use disorder: residential facilities.

Healthcare
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Dixon
Last action
Official status
Assembly - Died - Health
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

AB-877: Letters to Health Plans About Residential Substance Use Treatment

This law requires state agencies to send a letter by October 1, 2026, telling health plans that residential treatment for substance use is almost exclusively nonmedical.

What This Bill Does

  • Requires the Department of Managed Health Care, the Department of Insurance, and the State Department of Health Care Services to prepare one letter each.
  • Mandates sending these letters to chief financial officers of health care service plans, health insurers, or Medi-Cal managed care plans that provide coverage for substance use disorder in residential facilities in California.
  • States that the letter must inform recipients that treatment in licensed and certified or unlicensed residential facilities is almost exclusively nonmedical with rare exceptions.
  • Requires state agencies to consult with each other and with the State Department of Social Services when writing the letter content.
  • Sets a deadline for sending the letters on or before October 1, 2026.

Who It Names or Affects

  • Health care service plans
  • Health insurers
  • Medi-Cal managed care plans that provide coverage for substance use disorder in residential facilities

Terms To Know

Residential facilities
Places where people live while receiving supervision or therapeutic programs, which may be licensed and certified or unlicensed.
Nonmedical care
Care and supervision that does not involve medical treatment by licensed health professionals, as required for most residential facilities under existing law.

Limits and Unknowns

  • The law only requires sending a letter; it does not change the rules for what treatments must be covered.
  • These requirements end on January 1, 2027, when this part of the bill is repealed.

Bill History

  1. California Legislative Information

    Assembly - Died - Health

Official Summary Text

Health care coverage: substance use disorder: residential facilities.