PAC-Sponsored Bill Expands Credentialing Reform to Reduce Administrative Burdens on Independent Physicians Treating Medi-Cal Patients

SACRAMENTO, Calif. — Building on last year’s landmark law for small and independent practices, the Physician Association of California (PAC) has sponsored 2026 legislation to expand credentialing reform to Medi-Cal managed care plans, a move that will further reduce paperwork and delays for independent physicians and expand access to care for Medi-Cal patients statewide.

Introduced by Assemblymember Damon Connolly, Assembly Bill 2457 requires Medi-Cal managed care plans to use the same standardized credentialing form and process already required of commercial health plans under PAC’s 2025 law. The bill is sponsored by PAC and co-sponsored by America’s Physician Groups (APG).

“AB 2457 extends our recent gains in health care access to Californians in all communities,” said Matthew Robinson, CEO of the Physician Association of California (PAC). “This bill will eliminate unnecessary delays and burdens for physicians — particularly independent physicians who provide unique, patient-centered care — enabling them to care for more patients throughout California.”

Last year, Governor Gavin Newsom signed AB 1041, a law that created a single, standardized credentialing application for all health plans and required plans to act on completed applications within 90 days. AB 1041, which starts going into effect on Jan. 1, 2027, was a pioneering effort by PAC to advance independent, community-based health care.

This year’s PAC-sponsored legislation, AB 2457, extends that credentialing reform to Medi-Cal managed care plans, ensuring that independent physicians can join Medi-Cal networks more quickly and with less administrative burden.

“Every Californian deserves the right to quickly access care,” said Assemblymember Damon Connolly (D-San Rafael). “My AB 2457 removes administrative hurdles to deliver vital care to underserved Californians in rural and low-income areas.”

Before a physician can treat patients in a Medi-Cal managed care plan, the plan must approve the doctor’s credentialing application. This process verifies the physician’s qualifications and determines whether they can join the plan’s network and be reimbursed for treating Medi-Cal patients. When attempting to join these Medi-Cal plan networks, California physicians have faced months-long delays caused by outdated, inconsistent, and duplicative credentialing requirements that vary from plan to plan.

Credentialing delays are especially harmful to independent and small-practice physicians who lack the administrative resources of large health systems and physician groups. These barriers leave smaller clinics short-staffed and force patients to wait longer for treatment, often in rural, underserved areas of the state. The use of one standardized credentialing form and process will increase access to care across California by allowing providers to join health plan networks faster and with less paperwork.