Amends existing law to provide that a third party that requires prior authorization for items or services provided to a recipient of medical assistance shall accept authorization from the state.

This bill clarifies the responsibility of a third party covering a Medicaid-eligible individual to accept the state's authorization for a service or item the third party requires prior authorization for if the state plan (or a waiver) covers the service or item. This bill is required to be enacted by federal law and assures that Medicaid is always the payer of last resort for any Medicaid-eligible individual.