A Review of Governor's Reorganization Plan for Regulatory Oversight of Managed Health Care in California

For this study, the Commission reviewed the Governor's Reorganization Plan No. 1 of 1998 for regulatory oversight of managed health care in California. The plan proposed creating a Department of Managed Care, abolishing the Department of Corporations and expanding the role and renaming the Department of Financial Institutions.

State law establishes that all Governors' reorganization plans must be submitted to the Commission for review at least 30 days prior to submitting it to the Legislature for its consideration. Following its review and one or more public hearings on the proposal, the Commission offers a recommendation on whether the Legislature should allow the plan to go into effect.