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AB 257

Specialty care networks: telehealth and other virtual services.

2025-2026 Regular Session Introduced by Megan Dahle and 1 co-sponsor

Creates a state demonstration to build telehealth-based specialty-care networks for Medi-Cal and safety-net patients, funded by grants and evaluated for effectiveness.

In committee: Held under submission.
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Bill Summary · AB 257

AB 257 — Specialty care networks: telehealth and other virtual services

Status: In committee — Held under submission (05/23/2025)
Introduced: January 16, 2025 (Author: Flora)

Overview / Purpose

AB 257 would create a state demonstration project, called “Equal Access to Specialty Care Everywhere,” to develop financially sustainable specialty-care networks that use telehealth and other virtual services to improve access to specialty care for Medi‑Cal beneficiaries and patients served by safety‑net providers. The project is subject to a legislative appropriation.

Key provisions

  • Establishes Division 121 (Health & Safety Code, §§151100–151103) to authorize the demonstration and grant program.
  • Lead agencies: California Health and Human Services Agency (agency), in collaboration with the Department of Health Care Access and Information (HCAI) and the Department of Health Care Services (DHCS).
  • Eligible “qualifying providers”: rural health clinics, federally qualified health centers, critical access hospitals, other community health centers (including Indian health clinics) that either: (a) have ≥50% of patients uninsured or enrolled in Medi‑Cal, or (b) are located in an HRSA‑designated medically underserved area.
  • Telehealth definition: adopts Business & Professions Code §2290.5 (includes store‑and‑forward).
  • Grant program: agency to award funds (one or more grantees) via application; applicants must consist of—or partner with—a provider network that includes at least 10 qualifying providers and must demonstrate prior work delivering care and addressing social determinants in underserved communities.
  • Grant uses: develop specialty networks focused on safety‑net needs by providing health information technology, technical assistance, and support for specialists and primary care providers (care coordination, referrals, electronic consultations).
  • Project focus: may prioritize behavioral health, maternal health, and other specialties as determined by the agency.
  • Monitoring and evaluation: grantees must evaluate performance on objectives (e.g., reducing structural access barriers, improving cost‑effectiveness, optimizing utilization) and report findings to the agency. The agency must arrange an independent evaluation and publicly disseminate lessons learned, recommendations, and best practices.
  • Intent language: implementation is intended to facilitate compliance with existing network adequacy standards.

Who is affected / intended beneficiaries

  • Medi‑Cal beneficiaries and patients served by safety‑net providers (FQHCs, rural clinics, CAHs, Indian health clinics).
  • Safety‑net provider networks and specialty clinicians participating in the demonstration.
  • State agencies administering grants and evaluations.

Implementation & fiscal notes

  • Implementation is contingent on a legislative appropriation (annual Budget Act or other statute).
  • Bill was amended in March 2025 and referred to Appropriations (suspense) committee; fiscal committee review required. Specific funding amounts, award criteria, timelines, and programmatic details are not included in the available text.

Legislative history (selected)

  • 01/16/2025: Introduced; read first time.
  • 03/26–03/27/2025: Amended; re‑referred to Appropriations.
  • 04/08/2025: Placed on Appropriations suspense file.
  • 05/23/2025: Held under submission in committee.

Compiled from official sources — confirm details with the bill’s official record.

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