Legis
Healthcare
AB 2194, Chapter 588, Statutes of 2026 · Sunday 27 September 2026

Medi-Cal: special commissions

Orange County’s CalOptima board gets staggered terms, term limits, and a required independent governance audit.

The law strengthens oversight and accountability for the county-organized Medi-Cal health plan serving Orange County. It requires public reporting and corrective-action planning after an outside review of board governance, conflicts, and contracting practices.

What the law does ​

  • Sets staggered one-, two-, and four-year terms for CalOptima voting-board seats beginning with terms after January 1, 2027.
  • Limits specified non-supervisor board members to two consecutive four-year terms and no more than 10 consecutive years.
  • Requires CalOptima’s governing body to fund an independent external audit of its governance, conflict-of-interest controls, contracting, procurement, board nominations, and separation of board oversight from management.
  • Requires the auditor to allow stakeholder input, interview staff anonymously, and protect staff from retaliation for participating or sharing information.
  • Requires completion of the audit and submission of its report to the Legislature and the State Department of Health Care Services by July 1, 2027.
  • Requires CalOptima to publicly release the audit report and any corrective-action plan, while protecting confidential staff identities and proprietary information.

Who it affects ​

  • Orange County Health Authority, known as CalOptima, its governing body, executives, and staff.
  • Orange County Health Care Agency and the Orange County Board of Supervisors, which nominate and appoint board members.
  • Medi-Cal members, health care providers, contractors, vendors, consumers, and advocates connected to CalOptima.

Context ​

CalOptima is Orange County’s county-organized health system for Medi-Cal services.