Facts

In response to the COVID-19 pandemic, in July 2020, the Department of Managed Health Care (DMHC), California's regulator of health care service plans, adopted an emergency regulation that mandated the expansion of COVID-19 diagnostic testing for essential workers and directed health care service plans to negotiate with health care providers regarding the allocation of costs for that testing. California Association of Health Plans filed a petition for a writ of mandamus, alleging that the provision of the regulation requiring health care service plans to negotiate with health care providers was not properly adopted on an emergency basis, in violation of the Administrative Procedure Act and California Constitution.

PLAINTIFF'S CONTENTIONS: CAHP contended that the DMHC violated the APA when it adopted the challenged subsection of the emergency COVID-19 regulation without notice and opportunity for comment. CAHP contended that, as amended in 2007, the APA requires administrative agencies to make a showing of urgent need before enacting a regulation without notice.

DEFENDANT'S CONTENTIONS: DMHC contended that all provisions of the regulation, including the challenged subsection, were properly adopted on an emergency basis.

Result

The court entered judgment in CAHP's favor and against the DMHC and declared the challenged subsection of the regulation invalid and unenforceable.

Length

half day