AB 877: Health care coverage: substance use disorder: residential facilities.

The bill aims to improve health care coverage for substance use disorder treatment in residential facilities in California. The state departments of managed health care, insurance, and health care services will prepare and send letters to health care service plans, insurers, and Medi-Cal managed care plans, informing them that substance use disorder treatment in licensed and certified residential facilities is almost exclusively nonmedical. The letters will be sent on or before a specified date and will require the departments to consult with each other and the state department of social services. The provisions will take effect on January 1, 2027, and will be repealed after that date.