To amend the Consolidated Omnibus Budget Reconciliation Act of 1985 to expand the number of county operated health insuring organizations authorized to enroll Medicaid beneficiaries.

Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to increase from three to seven the maximum number of county-operated health insuring organizations in California authorized to enroll beneficiaries under title XIX (Medicaid) of the Social Security Act. Increases from 10 percent to 20 percent the maximum percentage of California Medicaid beneficiaries which may be enrolled with such organizations.