I found several sites that say it's not permitted, but none provided an exact reference for California, other than finding the exact law for mental health providers (below). Several websites also stated billing Medicaid recipients for no-shows is prohibited by federal law, but there are definitely some states that permit it. California Code of Regulations, Title 9, Sect 1810.365 specifies:
The MHP of a beneficiary, or an affiliate, vendor, contractor, or sub-subcontractor of the MHP shall not submit a claim to, demand or otherwise collect reimbursement from, the beneficiary or persons acting on behalf of the beneficiary for any specialty mental health services provided under this Chapter or related administrative services such as billing for missed appointments or making copies of client records, except to collect:
(1) Other health care coverage pursuant to Title 22, Section 51005.
(2) Share of cost as provided in Title 22, Sections 50657 through 50659.
(3) Copayments in accordance with Section 14134 of the Welfare and Institutions Code and Title 22, Section 51004.
For example, I know it's not permitted for Medicaid (which includes Medicaid managed care by the way) in NY either, but certainly couldn't quote the exact statute. Where it is prohibited, you may not bill a patient who has Medicaid as either primary or secondary. I do know there are offices that will discharge patients for repeated no-shows, which is another option.
In my opinion, there are a few options to deal with no shows, and there is no one size fits all answer. It will depend on the type of practice you have, and how much no-shows impact your operations.
If you are a subspecialty practice that books 45 minute appointments, even 2 no-shows in a day create a non-productive provider, and unnecessary long waits to schedule an appointment. If you are a type of practice that double books, and has an appointment every 10 minutes, then a few no shows are simply an opportunity for your provider and staff to actually eat a slice of pizza. Historically, the best way to reduce no shows is with reminder calls or texts. Supposedly the service companies that offer texting reminders seem to indicate it's a much better method than robo-call reminders.
My personal opinion would be to let the 1st missed appointment slide for all practices, with a warning that a repeat missed appointment will result in a fee. If you have a habitual "no show"er, then you could consider discharge from the practice - again, with a warning first and following all rules/regulations for discharging a patient.