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HomeWelfare and Institutions CodeDiv. 9Pt. 3Ch. 8Art. 4§ 14409 Medi-Cal Marketing Misrepresentation Rules

§ 14409 Medi-Cal Marketing Misrepresentation Rules

Welfare and Institutions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 14409 Medi-Cal Marketing Misrepresentation Rules

Key Takeaways

  • •No lying about who you are or who you work for when selling health plans.
  • •Don't say the government or others recommend your plan if they don't.
  • •Don't scare people into joining by saying they'll lose benefits if they don't sign up.
  • •If you break these rules, you can get fined, lose permissions, or even go to jail.

Example

A salesperson knocks on your door and says, 'The government sent me to sign you up for this health plan, or you’ll lose your benefits.'

This is illegal because the salesperson is lying about working for the government and scaring you into joining.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 14409 Medi-Cal Marketing Misrepresentation Rules

(a) No prepaid health plan, marketing representative, or marketing organization shall in any manner misrepresent itself, the plans it represents, or the Medi-Cal program. A violation of this section shall include, but is not limited to, all of the following: (1) False or misleading claims that marketing representatives are employees or representatives of the state, county, or anyone other than the prepaid health plan or the organization by whom they are reimbursed. (2) False or misleading claims that the prepaid health plan is recommended or endorsed by any state or county agency, or by any other organization which has not certified its endorsement in writing to the prepaid health plan. (3) False or misleading claims that the state or county recommends that a Medi-Cal beneficiary enroll in a prepaid health plan. (4) Claims that a Medi-Cal beneficiary will lose their benefits under the Medi-Cal program or any other health or welfare benefits to which they are legally entitled, if they do not enroll in a prepaid health plan. (b) Violations of this article or regulations adopted by the department pursuant to this article shall result in one or more of the following sanctions that are appropriate to the specific violation, considering the nature of the offense and frequency of occurrence within the prepaid health plan: (1) Revocation of one or more permitted methods of marketing. (2) Termination of authorization for a plan to provide application assistance. (3) Refusal of the department to accept new enrollments for a period specified by the department. (4) Refusal of the department to accept enrollments submitted by a marketing representative or organization. (5) Forfeiture by the plan of all or part of the capitation payments for persons enrolled as a result of such violations. (6) Requirement that the prepaid health plan in violation of this article personally contact each enrollee enrolled to explain the nature of the violation and inform the enrollee of their right to disenroll. (7) Application of sanctions as provided in Section 14197.7. (8) Temporarily suspend capitation payments for beneficiaries enrolled in violation of this article, or regulations adopted thereunder, until the prepaid health plan is in substantial compliance with the statutory and regulatory requirements. (c) Any marketing representative who violates subdivision (a) while engaged in door-to-door solicitation is guilty of a misdemeanor, and shall be subject to a fine of five hundred dollars ($500) or imprisonment in a county jail for six months, or both. (Amended by Stats. 2019, Ch. 465, Sec. 9. (AB 1642) Effective January 1, 2020.)

Last verified: January 23, 2026

Key Terms

prepaid health planmarketing representativeMedi-Cal programmisrepresentsanctionsdoor-to-door solicitation

Related Statutes

  • § 14408 Health Plan Marketing Rules
  • § 14410 Enrollment Discrimination Prohibition
  • § 14400 Prepaid Health Plan Enrollment
  • § 14401 Medi-Cal Prepaid Plan Enrollment
  • § 14402 Medi-Cal Prepaid Plan Enrollment

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Welfare and Institutions Code. Section 14409.
View Official Source