Assemblymember Valencia (D-Anaheim) Amends AB 2194

• Eric Lopez
• Communications Director
• (916) 319-2068
• [email protected]

SACRAMENTO, CA - Assemblymember Valencia (D-Anaheim) announced amendments to Assembly Bill 2194 that would establish an independent nominating committee that would select seven members of the CalOptima Health Board of Directors to strengthen oversight of the agency serving nearly 900,000 low-income Orange County residents.

"Today, the same body that appoints the CalOptima board also holds seats on it, concentrating political power over an agency whose decisions should focus on member needs and medical expertise," said Assemblymember Valencia. "Removing the supervisors and placing selection in independent hands de-politicizes the board and keeps its governance separate from politics."

"Every dollar CalOptima manages has to deliver full value for members, and strong, independent oversight is how we make sure it does," said Assemblymember Valencia. "These good governance reforms keep the board focused on one job, looking out for the people CalOptima serves."

CalOptima is Orange County's single largest health plan, covering nearly one in three county residents, including children, seniors, families, and people with disabilities, with an annual budget of $4.7 billion. The amendments to AB 2194 would create an independent, qualifications-based path to board service and dedicate the board's full attention to the people CalOptima serves.

The pressure has only grown. Federal legislation enacted last year imposed the largest funding cut in Medicaid's 60-year history. Up to 3.4 million Californians could lose Medi-Cal coverage and the state stands to lose roughly $30 billion in federal funding every year. Orange County is already feeling the impact, nearly 27,000 CalOptima members disenrolled in just two months, and beginning in July, members will pay $30 a month to keep full coverage.

Under current law, the Orange County Board of Supervisors appoints the CalOptima board, and two supervisors hold seats on it. AB 2194 would remove the two supervisors from the board and create an independent nominating committee to fill seven of its seats, de-politicizing the board so its work stays focused on members.

AB 2194 builds on Assemblymember Valencia's record of strengthening accountability in Orange County government. As an Anaheim City Councilmember, he was an early voice against the corruption that led to the resignation and federal conviction of former Mayor Harry Sidhu, calling for transparency and reform as the scandal unfolded. In the Legislature, he authored AB 34 (Ch. 315, Statutes of 2023), which created an independent redistricting commission to draw the county's supervisorial districts, AB 2946 (Ch. 249, Statutes of 2024) which requires Board of Supervisors approval and public disclosure before supervisors award district discretionary funds, and AB 2803 (Ch. 576, Statutes of 2024), which prohibits the use of campaign funds to pay legal costs for public corruption or fraud and requires reimbursement if an official is convicted. He also secured a state audit of the City of Anaheim's public payments to the Anaheim Chamber of Commerce and Visit Anaheim, which found the city had failed to properly oversee its contracts, resulting in millions in improper spending.

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Assemblymember Valencia proudly represents the 68th Assembly district which includes the cities of Anaheim, Orange and Santa Ana. Valencia chairs the Assembly Banking & Finance Committee and the Assembly Select Committee on Developing Pathways to Purpose for Young Men.