Unpacking California’s 2024 health law updates

In 2024, California Governor Newsom signed over 1,300 bills into law and vetoed almost 190. Among these, California enacted several impactful laws targeting the healthcare sector, effective January 1, 2025. These laws address artificial intelligence (AI), health facilities, providers, and health plans to improve compliance and equity.  

What happened  

Major healthcare laws passed in 2024 include regulations on AI in patient communications (AB-3030) and utilization review (SB-1120), expansions in charity care policies (AB-2297), and stricter controls on consumer medical debt reporting (SB-1061). Notable vetoes include AB-3129, seeking private equity oversight and hedge fund health care transactions, and SB-966, for regulating pharmacy benefit managers. Enforcement actions also made headlines, with the Department of Managed Health Care issuing rare fines for licensing violations.  

Going deeper  

Artificial Intelligence

• AB-3030: Requires a disclaimer for AI-generated patient communications involving clinical information unless reviewed by a licensed provider.
• SB-1120: Prevents AI tools from making final medical decisions, ensuring only licensed professionals can determine medical necessity.

Healthcare organizations and providers

• AB-2107: Allows remote review of lab tests under federal CLIA compliance rules.
• AB-2297: Expands charity care eligibility and limits aggressive hospital debt collection practices.
• AB-2319: Mandates implicit bias training for more healthcare workers involved in maternal care.
• SB-1061: Bans hospitals from reporting medical debt to credit agencies, with strict violation penalties.
• SB-1300: Extends public notice and hearing requirements for maternity ward and psychiatric unit closures.

Health plans

• AB-3275: Speeds up claim reimbursements to providers and increases penalties for delays.

Why it matters  

California's 2024 healthcare laws address emerging challenges, such as using AI in patient care, providing financial protections for patients, and enhancing provider accountability. These measures require transparency in AI applications, expand charity care eligibility, and prohibit reporting medical debt to credit agencies. 

Ultimately, these changes will modernize healthcare and prioritize equity, access, and patient safety.

The bottom line  

Providers must use AI safeguards, expand charity care, and improve maternal health training compliance. Health plans should streamline claim processes and refine utilization review practices, so patients can benefit from greater transparency and financial protections.

FAQs

Are AI-generated communications HIPAA compliant under California state law?

Yes, provided the communication includes the required disclaimer and safeguards patient privacy.

Do HIPAA compliant emails support AI?

Yes, HIPAA compliant emails allow healthcare providers, researchers, and AI developers to securely share data, supporting the development of more accurate and inclusive AI models while protecting patient privacy.

Are there any limitations when using AI in HIPAA compliant emails?

Yes, healthcare providers must ensure that AI-powered features comply with HIPAA regulations and industry best practices for data security and privacy. Additionally, providers should evaluate the reliability of AI algorithms to avoid potential risks or compliance issues.

Learn more: HIPAA compliant email API