Incentive Payment Program

Medi-Cal Transformation

California continues transforming Medi-Cal to ensure members get the care they need to lead healthier lives. The CalAIM Incentive Payment Program (IPP), which sunset on December 31, 2024, supported the launch and expansion of Enhanced Care Management (ECM), Community Supports, and other CalAIM initiatives by providing targeted incentives to Medi-Cal managed care plans (MCPs).

Through the IPP, MCPs strengthened member engagement and service delivery, built sustainable infrastructure and workforce capacity, promoted program quality with measurable improvements in utilization, and advanced equitable access for CalAIM Populations of Focus, including members newly eligible for services in 2023 and 2024.

The IPP's outcomes will help inform continued improvements in ECM, Community Supports, and other CalAIM programs moving forward.

IPP incentives were oriented around four primary goals:

Member engagement and service delivery, including reaching new members;
Building sustainable infrastructure and capacity, including health information technology, workforce, and provider networks;
Promoting program quality, with measurable impacts on utilization; and
Creating equitable access for ECM Populations of Focus (PoFs), including those newly eligible for services in 2023 and 2024

What does this change mean for Californians?

Medi-Cal remains committed to improving the quality and delivery of services to members. Through the CalAIM IPP, which concluded on December 31, 2024, Medi-Cal MCPs received meaningful incentives to expand Enhanced Care Management, Community Supports, and other tranformative programs.

To earn these funds, MCPs were required to meet rigorous milestones and demonstrate measurable progress towards building capacity, delivering services, and improving health outcomes. The lessons learned and infrastructure developed through the IPP will continue to strengthen Medi-Cal's delivery system and support ongoing efforts to ensure Californians receive high-quality, equitable care.

News

The Medi-Cal Incentive Payment Program (IPP) has officially sunset as of December 31, 2024. All incentive payments for qualifying activities were required to be completed before this date.

DHCS extends its gratitude to participating partners for their efforts to advance quality improvement and innovative care delivery through this program.

Please ensure that all outstanding reporting and reconciliation activites are finalized in accordance with DHCS guidelines. For questions or final deliverables, please contact CalAIMECMILOS@dhcs.ca.gov.