CALA News & Views | Issue 57 | Impact

Medi-Cal, Community Supports and health care financing

biometrics or behaviors by means other than direct observation by a person, including, but not limited to, video or audio surveillance, continuous incremental time-tracking tools, geolocation, electromagnetic tracking, photoelectronic tracking or that utilizes a photo optical system or other means.” Employers are prohibited from using AI-enabled surveillance tools to recognize, infer or predict an employee's emotional state or to collect neural data. While employers may continue to use these tools for safety purposes, the exception applies only if the technology does not perform either prohibited function. CALA joined a broad opposition coalition led by the California Chamber of Commerce, which argued that the bill's definitions are overly broad and could encompass routine workplace technologies, including video security systems. Opponents also contended that the safety exception is too narrow because any AI enabled tool capable of making emotional-state inferences could fall outside the exemption, even when used solely for safety purposes. In his signing message, Governor Newsom called for further legislative refinement to better balance employee protections with the appropriate use of workplace technologies. As technology becomes increasingly integral to senior living, CALA will continue to champion policies that support its responsible adoption, recognizing its role in enhancing resident safety, streamlining operations, supporting caregivers, and improving health outcomes and quality of life. Through its newly established Technology Committee , CALA is focused on educating policymakers on the value of these tools and the benefits they provide to residents and families, including greater engagement, increased independence and better outcomes.

AB 2348 (Bonta) allows Medi-Cal managed care plans to continue covering Community Supports, including Assisted Living Facility Transitions (ALFT), if CalAIM ends. It also establishes requirements to promote consistency and accountability and directs DHCS to report to the Legislature by March 31, 2029, on making CalAIM benefits required. CALA supports efforts to make ALFT a required CalAIM benefit, providing stability for providers and ensuring continued access to Assisted Living for older adults who might otherwise be forced into higher levels of care. The urgency of this issue became clear when Health Net announced it would discontinue ALFT effective Dec. 31, impacting approximately 3,500 residents and 150 providers. The decision has created significant uncertainty for residents, families and providers and underscores the risk of relying on a benefit that managed care plans can eliminate with little notice. Since learning of Health Net’s decision, CALA has joined with other providers, consumer advocates and impacted members to push for continuity of care. While DHCS lacks authority to require plans to offer ALFT, sustained advocacy resulted in guidance requiring Health Net to guarantee contracts until the end of the year and conduct continuity-of care reviews for residents without authorizations extending beyond the termination date and ensure services remain available despite provider contract terminations. SB 177 (Committee on Budget and Fiscal Review) requires the Department of Finance to develop options for the Legislature to consider by March 1, 2027, to address potential federal Medi-Cal funding cuts, including a possible employer premium on businesses with 250+ employees whose workers receive Medi-Cal and are not offered health coverage. CALA will continue working with CalChamber and other business groups that opposed the bill as proposals are considered next year.

AB 2348

SB 177