In California, pending Assembly Bill 3129 could severely limit the ability of digital health companies to grow and operate in the state by prohibiting arrangements between physician, psychiatric, and dental practices and any entity that furnishes business or management services to providers that accept investments from private equity groups and hedge funds. The legislation’s current definition of private equity is arguably broad enough to capture venture capital funds, angel investors, family offices and even the innovation or investment arms of academic and nonprofit medical centers. Digital health companies based in California who provide benefits services should closely monitor the potential impact of this proposed legislation on their businesses.
California’s SB 553, which went into effect July 1, 2024, creates a new layer to California employers’ existing injury and illness prevention programs. Under SB 553, all California employers are now required to implement a workplace violence prevention plan (WVPP), provide training to employees regarding the WVPP and keep records of workplace violence incidents. As of January 1, 2025, the law also expands employers’ and employee representatives’ rights to obtain restraining orders on behalf of employees affected by threats of workplace violence.
The New York State fiscal year 2024 – 2025 budget institutes a new tax on health plans, including insurers and managed care organizations. This tax has been garnering attention for its promise to yield $4 billion for New York State. The expected revenue from the tax, however, is set to come not from the health plans operating within the state but from the federal government. California implemented a similar scheme last year.
On September 30, 2023, California Governor Gavin Newsom signed SB 553 into law, creating a new layer to California employers’ existing injury and illness prevention programs (IIPP). Under SB 553, employers are required to implement a workplace violence prevention plan (WVPP) no later than July 1, 2024, to provide training to employees regarding the WVPP and to keep records of workplace violence incidents. As of January 1, 2025, the law also expands employers’ and employee representatives’ rights to obtain restraining orders on behalf of employees affected by threats of workplace violence.
California Governor Gavin Newsom recently signed Assembly Bill 352 and Assembly Bill 254 into law, effective January 1, 2024. Through these new laws, California seeks to mitigate the risk of out-of-state prosecution of individuals seeking abortions or gender-affirming care. These bills include significant changes to California privacy and health information interoperability laws that will impact healthcare providers, health plans, employers, electronic health record developers and certain digital health companies handling medical information related to gender-affirming care, abortion, and abortion-related services, sexual health, fertility or contraception.
While California healthcare workers will see their pay increase over the next several years thanks to a new state law, industry analysts say more must be done to address healthcare workforce shortages. In this Bloomberg Law article, Michelle Strowhiro offers insight into the pressures facing healthcare providers.
On October 4, 2023, California Governor Gavin Newsom signed Senate Bill 616 into law, officially expanding the Healthy Workplaces, Healthy Families Act of 2014, California’s paid sick leave law. Effective January 1, 2024, California employers must begin providing eligible employees with at least five days or 40 hours of paid sick leave, increased from the previous minimum of three days or 24 hours. Employers with combined paid time off policies should review and update their policies as needed.
Numerous states—including Louisiana, Ohio, California, Tennessee and New Jersey—have been finalizing rulemaking and legislation that create or amend professional practice standards to incorporate telehealth. Several of these states have also proposed regulations or laws related to the provision of care to youths.
Regulators in California and Colorado recently announced enforcement sweeps under new and newly updated state privacy laws. Companies in Colorado (including nonprofits) and California should double-check their privacy notices, processes and documentation to comply with these laws, particularly the enforcement priorities identified in the notices.
Numerous states—including Alaska, Maryland, California and Colorado—have been busy finalizing rulemaking and legislation impacting Medicaid coverage and maternal health. What have these states been up to over the last month?
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