Last month, the Physician Association of California (PAC) commended Governor Gavin Newsom for signing Assembly Bill 1041 (Bennett), a PAC-sponsored bill that improves patient access to care and boosts small and independent practices by streamlining the physician credentialing process.
"This law puts time and control back in the hands of doctors and helps patients get care faster. AB 1041 marks a major win for patients, physicians, and small businesses across California,” said Dr. Omer Deen, PAC’s Board Chair. “When independent physicians come together, we can shape policy and drive real change for our patients and our profession.”
Before a physician can see patients under a specific health insurance plan, the plan must first approve the provider’s credentialing application. This process verifies the physician’s education, training, and professional history to ensure they meet the plan’s standards. The credentialing process is how health plans determine whether to include a doctor in their network, which is essential for the doctor to be reimbursed for treating patients with that insurance.
For too long, California physicians have faced months-long delays when trying to join health plan networks. These delays are caused by outdated, inconsistent, and duplicative credentialing requirements that vary from plan to plan.
Credentialing delays are especially harmful to independent and small-practice physicians who lack the administrative resources of large health systems and physician groups. These barriers leave smaller clinics short-staffed and force patients to wait longer for treatment, often in rural, underserved areas of the state.
The new law, AB 1041, creates a single, standardized credentialing application for all health plans and requires plans to act on completed applications within 90 days. AB 1041 is the first PAC-sponsored bill to be signed into law, representing a landmark milestone in the advancement of patient-centered, private practice care.
“Can you imagine being unable to reach your doctor because of redundant paperwork?” said Assemblymember Steve Bennett (D-Ventura). “No one should face delay in acquiring care because of duplicative, time-consuming administrative forms. This bill cuts red tape so doctors can get credentialed faster and patients can get the care they need.”
Established in 2023, PAC is the state’s only trade association solely focused on protecting and advocating for independent and small-practice physicians. With over 15,000 members, PAC champions policies that preserve physician autonomy, streamline healthcare delivery, and expand patient access. All CAP members receive automatic complimentary membership in PAC. For more information, visit www.pac-md.org.