On July 10, California’s Governor Newsom signed the state’s budget into law. The budget includes a trailer bill (a bill with amendments necessary to pass the budget) building on the foundation laid in last year’s bill establishing 988 fees in the state (AB 988). California has centered the 988 Lifeline as an essential block in the state’s larger behavioral health response structure. 

Here are a few of the bill’s highlights:

• Authorizes the Legislature to consider additional uses for the revenue generated by the 988 surcharge based on recommendations made by CalHHS and the 988-advisory group. The bill also revises the priority uses for 988 surcharge revenues.
• The California Health and Human Services Agency must develop recommendations for a five-year plan to establish a comprehensive 988 system by December 2023.  
• Prohibits a health care service plan or health insurer from requiring prior authorization for crisis stabilization care but allows prior authorization for medically necessary mental health or substance use disorder services following stabilization from a behavioral health crisis addressed by services provided via the 988 system.

The changes enacted in the state’s budget strengthen California’s ability to provide service to those in need at every level of the crisis continuum. To read the entire bill, click here.