California's Senate Budget and Fiscal Review Subcommittee No. 3 on Health and Human Services convened on May 1, 2025, to discuss critical updates and proposals aimed at enhancing healthcare services across the state. A key highlight from the meeting was the rebranding of "behavioral health coaches" to "wellness coaches," a change made to better resonate with youth. This adjustment also includes a revision of the coaches' responsibilities, focusing on crisis referrals rather than crisis de-escalation and safety planning, and allows school staff to supervise these coaches alongside licensed behavioral health professionals.

The subcommittee also addressed the pressing issue of clinical training slots for nurses in California's Community Colleges and CSU system. Legislation was proposed to require health facilities and clinics to collaborate with nursing programs to ensure adequate clinical placements. If they are unable to provide these placements, they must submit a written justification to the Health Care Access and Information (HCAI) department, which will be made publicly available.

In addition, the meeting covered several bills related to facility regulations, including a provision that grants small and critical access hospitals an extended timeline to comply with seismic safety standards, provided they submit a compliance plan with approved milestones. This extension is also applicable to the Children's Hospital of Los Angeles.

The Department of Managed Health Care (DMHC) presented its budget proposal, emphasizing its mission to protect consumer healthcare rights and ensure a stable healthcare delivery system for approximately 30 million Californians. The DMHC's proposed budget for the 2025-2026 fiscal year is $186 million, with a focus on modernizing its technology infrastructure to enhance security and operational efficiency. This includes a request for funding to improve identity and access management systems, customer relationship management modernization, and the development of a new web-accessible service portal.

Legislative proposals discussed included changes to the reimbursement timelines for healthcare claims, the extension of coverage for multi-employer welfare arrangements, and new requirements for health plans regarding opioid use disorder treatments and the use of artificial intelligence in healthcare decision-making.

These discussions reflect California's ongoing commitment to improving healthcare access and quality, addressing both immediate needs and long-term challenges within the system. The subcommittee's decisions are expected to have significant implications for healthcare providers and consumers alike, paving the way for enhanced services and support across the state.