July 6, 2026

Top News

Behavioral Health Services Act 

July 1 marked California’s official transition from the Mental Health Services Act to the transformative Behavioral Health Services Act (BHSA), aligning county investments to address behavioral health grounded in accountability, equity, and outcomes. Additionally, DHCS released updates to the BHSA County Policy Manual. These updates provide counties and behavioral health leaders with guidance to support both annual and intermittent updates and to ensure a smooth transition to the BHSA. This policy manual release includes an updated annual and intermittent update template featuring new questions on performance measures and Full Service Partnership eligibility, as well as a revised budget template that incorporates recent stakeholder input. For specific questions or technical assistance, please email BHTinfo@dhcs.ca.gov.

Justice-Involved Reentry Initiative Goes Live in Los Angeles County

On July 1, Los Angeles County rolled out California’s Justice-Involved Reentry Initiative, which expands access to vital prerelease services for eligible youth and adults in county jails, state prisons, and secure youth treatment facilities. Los Angeles County operates one of the largest jail systems in the country, and DHCS is pleased to collaborate with the county to expand access to Medi-Cal coverage for the more than 50,000 Medi-Cal-eligible members in the county transitioning from incarceration back into the community each year. Los Angeles County’s launch builds upon existing reentry and care navigation programs and expands local capacity to support individuals transitioning back into the community.

Under the Justice-Involved Reentry Initiative, Medi-Cal eligible individuals may receive a targeted set of services up to 90 days prior to release, helping ensure continuity of care and successful reentry into the community. Since October 2024, all 31 state prison facilities, 26 county jails, and 17 youth correctional facilities in 16 counties went live with pre-release services. State and county correctional facilities have so far screened and identified 34,956 incarcerated individuals eligible for pre-release services, and facilities and implementing partners delivered more than 159,000 billable prerelease services and prescriptions to incarcerated individuals. Alameda, Lassen, Tulare, and San Bernardino counties are scheduled to launch this month. All California county correctional facilities are required to implement this initiative no later than October 1, 2026.

Program Updates

Launch of Individual Service Level Encounter Reporting

On July 1, DHCS introduced a major advancement in California’s behavioral health data infrastructure: Individual Service Level (ISL) encounter reporting. ISL reporting requirements apply only to services delivered by the county behavioral health system that are not reimbursable by DHCS through the Medi‑Cal program. The new system provides counties with real-time visibility into their own data, a modernized method for integrating their systems with DHCS, and a centralized platform for conducting business with the Department. These improvements enhance accountability and transparency by giving DHCS better insight into funding utilization, helping to address community needs and support Californians with behavioral health concerns. DHCS will continue releasing policies and tools to help counties meet BHSA requirements and innovate within their behavioral health systems. For more information, please visit the Behavioral Health Transformation website.

Revised Medi-Cal Managed Care Accountability Set and Behavioral Health Accountability Set Measures for 2026

On July 1, DHCS published updated 2026 Medi-Cal Managed Care Accountability Set (MCAS) and Behavioral Health Accountability Set (BHAS) measures to align with new federal Centers for Medicare and Medicaid Services (CMS) Medicaid and Children’s Health Insurance Program quality rating system requirements. Updates include two new report-only measures for mental health plans under BHAS and eight new report-only measures under MCAS. Updated measure sets are available on the DHCS Accountability Sets website. For questions, please email QualityMeasures@dhcs.ca.gov.

Quality Incentive Pool Program Year 7 Evaluation Report

On June 29, DHCS published the Quality Incentive Pool (QIP) Program Year 7 Evaluation Report, as required by CMS. QIP, launched in 2017, is a directed payment program that advances the state’s quality strategy by linking payments to quality improvements made by Designated Public Hospital (DPH) and District and Municipal Public Hospital (DMPH) systems for Medi-Cal members. The 2024 evaluation report assesses the impact of $2.2 billion in directed payments made to participating DPH and DMPH systems in 2024 to support improvements in inpatient and outpatient care quality for members. In 2024, DHCS continued to require DPHs to demonstrate improvement across an expanded set of 20 mandatory priority measures, as well as elective measures selected by each QIP entity. Overall, from 2023 to 2024, DPHs improved on 16 of 20 priority measures, and DMPHs improved on 14 of 20 priority measures. However, both DPHs and DMPHs experienced declining performance on childhood immunization rates.

Join Our Team

DHCS is seeking a talented and motivated individual to serve as:

• Deputy Director and Chief Administrative Law Judge (ALJ), Office of Administrative Hearings and Appeals (OAHA). The Deputy Director and Chief ALJ oversees and has full decision-making authority for all OAHA program functions for DHCS, and is responsible for ensuring that all proceedings and decisions resulting from both formal and informal hearings are conducted in accordance with the Administrative Procedure Act and all applicable laws and regulations. Applications must be submitted by July 16.

DHCS is also hiring for its Health Care Financing, Clinical Assurance, and other teams. For more information, please visit the CalCareers website.

Upcoming Stakeholder Meetings and Webinars

DHCS posts upcoming public meetings on its Calendar of Events. DHCS provides free assistive services, including language interpretation, real-time captioning, and meeting materials in alternate formatting. To request services, please email the Office of Civil Rights at civilrights@dhcs.ca.gov at least ten working days before the meeting.

Behavioral Health Transformation Public Listening Session

On July 8, from 10 to 11 a.m. PDT, DHCS will host a public listening session (advance registration required) on the Behavioral Health Outcomes, Accountability, and Transparency Report (BHOATR), a new reporting requirement under the BHSA. The BHOATR supports DHCS’ efforts to monitor and track county implementation of the BHSA. During the session, members of the public will have the opportunity to provide comments on BHOATR requirements and the DHCS-developed template that outlines the elements counties must submit. Visit the Behavioral Health Transformation webpage for more information about upcoming public listening sessions and additional resources. For questions about Behavioral Health Transformation or the listening sessions, please email BHTinfo@dhcs.ca.gov.

All-Comer Value Strategy Webinar

On July 9, from 3:30 to 5 p.m. PDT, DHCS will host a public webinar on its Medi-Cal Value Strategy. Join DHCS to learn how California is advancing high-quality, cost-effective care. Value in health care means improving member health and wellness at the right cost. This webinar will cover the concept of value, how current programs and policies relate to value, and what DHCS intends to accomplish long-term to increase value. Information will be provided about both managed care plan and county behavioral health plan delivery systems and services. Please note that some participants may experience issues loading the registration page. If the site does not load on the first attempt, please refresh your internet browser multiple times until the page populates.

California Children’s Services (CCS) Advisory Group Meeting

On July 15, from 1 to 4 p.m. PDT, DHCS will hold the quarterly CCS Advisory Group Meeting. Attendees are encouraged to join the meeting in person at 1700 K Street, Sacramento or online DHCS and the CCS Advisory Group partner to ensure children and youth in the CCS/Whole Child Model program receive appropriate and timely access to quality care. Agenda topics include discussions about the unsatisfactory immigration status January 2027 transition from managed care to fee-for-service Medi-Cal, H.R. 1 medical frailty and work requirements, DHCS Service Authorization Requests, CCS provider paneling and facility review processes, Medi-Cal Rx ICD-10, and CCS program updates. Additional information and meeting details are available on the CCS Advisory Group webpage. Please email any questions to CCSProgram@dhcs.ca.gov.

Proposition 64 Advisory Group Meeting

On July 16, from 10 a.m. to 12 p.m. PDT, DHCS will host the Proposition 64 Advisory Group meeting (advance registration required). The meeting agenda includes status updates on the Youth Education, Prevention, Early Intervention, and Treatment Account-funded projects, Round 8 contract for Elevate Youth California (EYC), and EYC annual report and evaluation. Additional materials are posted on the Prop 64 Advisory Group webpage. Please email any questions to DHCSProp64@dhcs.ca.gov.

Hospice Benefit Quarterly Stakeholder Meeting

On July 21, from 2:30 to 3:30 p.m. PDT, DHCS will hold the hospice benefit quarterly stakeholder meeting to provide important updates about Medi-Cal-covered hospice services, including policy and system changes, as well as offer an open forum for questions and feedback. For questions or more information, please email MCHospiceClerk@DHCS.ca.gov.

What’s New in STIs: Testing, Treatment, and Prevention Updates Webinar

On July 23, from 12 to 1:30 p.m. PDT, DHCS’ Office of Family Planning will host the What’s New in STIs: Testing, Treatment, and Prevention Updates webinar (advanced registration required). This webinar will discuss available at-home testing options for sexually transmitted infections (STI) and cervical cancer, treatment updates for Mycoplasma genitalium and gonorrhea, and STI prevention updates for both sexually transmitted Shigella and doxycycline post-exposure prophylaxis (doxy-PEP). For those unable to attend the live webinar, a transcript and recording, along with additional resources, will be available on the Family PACT website.

Ordering, Referring, and Prescribing Requirements: Stakeholder Town Hall

On July 30, from 9:30 a.m. to 11 a.m. PDT, DHCS will host a town hall webinar (advance registration required) to explain Ordering, Referring, and Prescribing (ORP) enrollment requirements for claims across both pharmacy (Medi-Cal Rx) and medical (CA-MMIS) billing systems. Federal law requires providers who order, refer, or prescribe services for Medi-Cal members to be enrolled in Medi-Cal and identified on claims using a valid Type 1 National Provider Identifier (NPI). The webinar will explain this requirement, clarify what prescribers and providers must do to achieve or stay in compliance, and gather questions from stakeholders. To meet the ORP requirements responsibly, DHCS is taking a measured, data-driven approach that emphasizes outreach, provider education, and early enrollment support before full claim edit enforcement begins. This approach protects timely access to medications and medical services while DHCS works closely with plans, providers, vendors, and stakeholders to maintain alignment across pharmacy and medical systems. DHCS will continue to share updates as planning moves forward.

Coverage Ambassador Webinar Series

On July 30, from 11 a.m. to 12 p.m. PDT, DHCS will host a Coverage Ambassador webinar to provide a high-level introduction and overview of the unsatisfactory immigration status to fee-for-service transition (advanced registration required). Spanish interpretation and live captions will be available. Coverage Ambassadors are trusted messengers who help raise awareness about Medi-Cal benefits, enrollment opportunities, and new initiatives aimed at building a healthier California for all. Visit the Coverage Ambassador website for more information, including how to subscribe to receive regular updates, newsletters, and webinar reminders.

Medi-Cal Doula Benefit Townhall Meeting

On August 7, from 9 to 10:30 a.m. PDT, DHCS will hold a Medi-Cal doula benefit townhall meeting for Medi-Cal members, providers, community partners, and stakeholders (virtual via Microsoft Teams and in person at 1500 Capitol Avenue (Auditorium), Sacramento). This forum will share important updates on Medi-Cal doula services and provide a space for shared learning, discussion, and questions. The webinar is open to all interested parties, and we encourage broad participation as we discuss ongoing efforts to strengthen Medi-Cal doula services and improve access, quality, and Medi-Cal member experience. Please email any questions to DoulaBenefit@dhcs.ca.gov.

In Case You Missed It

DHCS Released Latest Enhanced Care Management and Community Supports Quarterly Report

On June 26, DHCS released the latest Enhanced Care Management (ECM) and Community Supports quarterly report, covering July to September 2025 (Q3 2025) and highlighting statewide trends since January 2022. The report shows strong, continued growth: nearly 227,500 members received ECM in Q3 2025—a 59 percent increase from Q3 2024—with notable gains among children, youth, and people experiencing homelessness. Community Supports use is also rising, with nearly 191,000 members accessing at least one service during the quarter. See this fact sheet for more information.