The use of information and communication technologies to deliver health care remotely, referred to as telehealth, has been reimbursable under California law since 1996. However, telehealth technologies and applications have advanced over the last decade and a half, leaving the current reimbursement laws outdated. The recent passage of Assembly Bill 415 will serve to modernize reimbursement law, and to help clear the path for the increased use of telehealth in California. Our analysis identified the potential fiscal impact of AB 415 on the State of California, primarily focusing on the Medi-Cal program. In addition, we described the fiscal effects that expanded use of telehealth (as envisioned by AB 415) could bring to other health services payers in California.