Gov. Gavin Newsom recently vetoed a legislative bill opposed by the California Chamber of Commerce that would hurt access to health care by cutting off needed private funding to health care providers.
The bill is AB 3129 (Wood; D-Santa Rosa)would have required private investors to obtain the consent of the California Attorney General before acquiring or changing certain health care entities.
in him Veto Letter of September 28thGovernor Newsom said the state already has an agency called the Health Insurance Affordability Agency (OHCA) and is conducting a cost and market impact review (CMIR) of mergers, acquisitions, and partnerships involving health insurance plans that will help the state deal with health care consolidation transactions. He pointed out that they are examining and evaluating the , hospitals, physician organizations, pharmacy benefit managers, and other healthcare organizations.
“…OHCA was created as the responsible state agency to review proposed health care transactions. Since OHCA already does much of this work, it is better suited to oversee these integration issues.” Yes,” he said.
Opponents of Cal Chamber
A coalition of CalChamber and allied organizations opposed AB 3129 and vetoed it because:
- Cutting off a critical source of funding for health care providers. Many health care providers in California are struggling with a lack of resources, especially in underserved areas where residents are already struggling to access care. AB 3129 unilaterally and arbitrarily deprives private funds and investments that serve as a lifeline for struggling health care providers to maintain access to care and a necessary resource to expand access to care. It would give the attorney general new powers to veto.
- Adds millions of dollars a year to the general fund. The potential annual cost of the appeals process recently added to AB 3129 is at least as low as That’s millions of dollars. They were encouraged to appeal the AG’s decision.
- Healthcare innovation and partnership success are threatened. AB 3129 threatened private investment and partnerships that help drive innovation and expand access to care. In a letter of opposition, the coalition noted that private investment is helping dental clinics expand access to care to more underserved children. Helped thousands of physicians by providing administrative and back-office support. We have enabled access to reproductive care with more convenience and support. And we strengthened our health care system and improved the lives of patients by funding outpatient clinics, oncology clinics, long-term care, emergency care, dental care, behavioral health, and other health care.
In the letter, the coalition also highlighted that California already spends millions of dollars on OHCA to assess health care spending.
“AB 3129 envisions the nature of the problem and how best to address it, rather than waiting for OHCA data to inform data-driven policy development,” the coalition said.
