​​​January 5, 2026

Top News

Stable Housing, Stronger Recovery: Transitional Rent Now Required Statewide

Beginning January 1, 2026, all Medi-Cal managed care plans are required to provide Transitional Rent to eligible members of the behavioral health population of focus. Transitional Rent is the newest addition to the suite of Community Supports, designed to help Medi-Cal members experiencing or at risk of homelessness. This benefit provides up to six months of rental assistance in interim or permanent housing settings for members who are homeless or at risk, have certain clinical risk factors, and have recently undergone a critical life transition, such as exiting an institutional or carceral setting, foster care, or other high-risk situations. Transitional Rent acts as a bridge to permanent housing, helping members connect to health care services and avoid returning to homelessness. This requirement is a cornerstone of California's Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) initiative, which aims to address social and health needs that impact mental wellness, reduce unnecessary emergency visits and institutional stays, and build a more equitable, person-centered behavioral health system. For additional guidance and resources, see the Community Supports Policy Guide Volume 2 (page 57).

Medi-Medi Plan Expansion: What You Need to Know

Starting in 2026, California is expanding access to Medi-Medi Plans––integrated health plans for people who have both Medicare and Medi-Cal—to improve care coordination for individuals eligible for both Medicare and Medi-Cal. Currently, Medi-Medi Plans serve approximately 330,000 members in 12 counties: Fresno, Kings, Los Angeles, Madera, Orange, Riverside, Sacramento, San Bernardino, San Diego, San Mateo, Santa Clara, and Tulare. In 2026, nine new Medi-Medi Plans will launch, and three existing Medi-Medi Plans will expand, to serve 461,000 potential members in 29 additional counties: Alameda, Alpine, Amador, Calaveras, Contra Costa, El Dorado, Imperial, Inyo, Kern, Marin, Mariposa, Merced, Mono, Monterey, Napa, Placer, San Benito, San Francisco, San Joaquin, San Luis Obispo, Santa Barbara, Santa Cruz, Solano, Sonoma, Stanislaus, Tuolumne, Ventura, Yolo, and Yuba.

This expansion brings the total to 41 counties that offer Medi-Medi Plans, nearly quadrupling access to these plans. Californians in these counties who are eligible for both Medicare and Medi-Cal will have the option to enroll in a Medi-Medi Plan to receive additional support to help manage chronic conditions, disabilities, or long-term care needs. Medi-Medi Plans, also known as Dual Eligible Special Needs Plans (D-SNP), offer integrated benefits, streamlined services, and a single point of contact for members who qualify for both programs. These features help members navigate complex systems and access more person-centered care. Medi-Medi Plans include coordinated medical, behavioral health, and long-term services, along with Enhanced Care Management and support for social needs. Enrollment is voluntary and available to individuals who meet dual eligibility criteria. For more details, visit the Medicare Medi-Cal Plan List webpage, Joining a Medi-Medi Plan information sheet, and the Medi-Medi Plan Expansion Fact Sheet.

Medi-Cal Asset Limits Return

Starting January 1, 2026, Medi-Cal coverage eligibility will be limited based on assets (things that are owned). This applies to members who are age 65 or older, have a disability (physical, mental, or developmental), live in a nursing home, or are in a family that makes too much money to qualify under federal tax rules. This means members must share information about what they own when applying for or renewing Medi-Cal. The new asset limits are $130,000 for an individual, plus $65,000 for each additional household member (up to 10 members). For married couples with spousal impoverishment protections, additional allowances apply. Countable assets include cash, bank accounts, stocks, and secondary properties. Exempt assets include one primary residence, one vehicle, household goods, and certain retirement accounts. On or after January 1, 2026, new applicants must report assets in their application, and current members will report assets at their next renewal after January 1, 2026. In preparation for the reinstatement of asset limits, General Information Notice and FAQs were mailed to all affected Medi-Cal members in their preferred language. For more information and resources, visit DHCS Medi-Cal Changes.

Medi-Cal Adult Enrollment Freeze

Starting January 1, 2026, adults aged 19 and older without a qualifying immigration status who are not already enrolled in Medi-Cal are no longer eligible to apply for full-scope Medi-Cal coverage. Members already enrolled in full-scope Medi-Cal, regardless of immigration status, can stay enrolled. However, they must renew their coverage on time and meet eligibility rules, including income and California residency. If a member loses coverage, they will have a three-month grace period to re-enroll starting the day their coverage ends. After that, they will only be eligible for restricted-scope Medi-Cal, which covers emergency care, pregnancy-related services, and nursing home care. Full-scope Medi-Cal will still be available to children, pregnant individuals (coverage lasts through the pregnancy and for one year after the pregnancy ends), and foster youth and former foster youth who were in foster care on their 18th birthday, up to age 26. For details on who is affected, see Immigration Status and Medi-Cal Eligibility and DHCS Medi-Cal Changes.

Program Updates                                           

Updated: DHCS Statement on the Federal Use of Medi-Cal Data and Member Privacy

DHCS remains committed to protecting the privacy and well-being of all Medi-Cal members. Recent reports and legal developments have raised serious concerns about how federal agencies use Medicaid data, including personal information for the more than 14 million Californians covered by Medi-Cal. We want to share what we know. On December 29, 2025, a federal court ruled that the Centers for Medicare & Medicaid Services (CMS) may share limited information with Immigration and Customs Enforcement (ICE) only for individuals who are not “lawfully residing" in the United States. However, some uncertainty remains as the federal government has not provided California with any information about how it plans to implement the court's order. Read DHCS' updated statement.

SB 582 Implementation Update

Senate Bill (SB) 582 (Stern, Chapter 546, Statutes of 2025) establishes revised licensing policies for health and care facilities under the jurisdiction of the California Department of Social Services (CDSS), California Department of Health Care Services (DHCS), and California Department of Public Health (CDPH) during a declared emergency or disaster. This new law takes effect, in part, on January 1, 2026, with additional provisions effective on January 1, 2028. The primary purpose of SB 582 is to help licensed facilities recover and reopen more quickly after destruction or damage from a disaster by allowing for a temporary suspension of their active licenses, thereby avoiding a lengthy and costly relicensing process. SB 582 outlines specific roles for CDSS, DHCS, and CDPH concerning various types of facilities.

DHCS is finalizing a Behavioral Health Information Notice (BHIN) to provide guidance to licensed alcohol and other drug (AOD) recovery or treatment facilities and certified AOD programs regarding the process for requesting inactive license or certification status following a declared emergency or disaster. DHCS released the draft BHIN on December 23, 2025, for stakeholder review and feedback to LCDQuestions@dhcs.ca.gov by January 9, 2026.

CDPH will issue an All Facilities Letter to skilled nursing facilities (SNF) to inform them that they must now seek and incorporate input from local and regional planning offices, including their medical health operational area coordinator, and provide copies of the plan to local and regional planning offices. Nurse surveyors will continue to review emergency response plans annually via the SNF re-licensure process. In addition, CDPH teams will monitor emergency response compliance with federal regulations through the federal recertification process. Nursing staff may review these items again while onsite for complaints or other onsite activities. Additionally, CDPH has implemented a LEAN Transformation project to address efficiency concerns during emergency response across various centers and offices, including, but not limited to, the Center for Health Care Quality, Center for Preparedness and Response, and others.

CDSS is in the process of implementing this legislation by developing new procedures, updating system programming, creating and revising forms, establishing licensing standards, and providing staff training. CDSS engages licensees, stakeholders, and partners to strengthen understanding of existing licensing requirements and support a streamlined implementation process.

Licensing standards and draft regulations are currently under development to ensure compliance with statutory deadlines. In addition, existing forms, dashboards, and reports may be enhanced to promote alignment and will be leveraged for outreach with external partners.

340B Rebate Model Pilot Program

On December 29, the U.S. District Court in Maine issued a preliminary injunction blocking the Health Resources and Services Administration (HRSA) from implementing the 340B Rebate Model Pilot Program, which was scheduled to begin on January 1, 2026. This injunction applies to the implementation of the program in California and will remain in effect pending further legal action. As a result, DHCS will not implement the policy guidance, issued on December 11, 2025, regarding drugs included in the 340B Rebate Model Pilot Program until further notice. Pharmacy providers should continue submitting Medi-Cal Rx and medical claims, as applicable, in accordance with all existing Medi-Cal 340B billing policies. On December 30, DHCS communicated this update to providers through a Medi-Cal bulletin article and Medi-Cal Rx alert.

Join Our Team

DHCS is hiring for its Accounting, Audits and Investigations, Financial Management Division, 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 alternate formatting of meeting materials. To request services, please email DHCS at the appropriate contact email address at least ten working days before the meeting.

New Online Training to Support SUD Counselors

On January 12, DHCS, in partnership with the University of California San Diego Division of Extended Studies, will launch the Advancing SUD Counselor Education and Development (ASCEND) Program. ASCEND is a free, self-paced, 80-hour online training for substance use disorder (SUD) counselors featuring instruction from experienced professionals. The program was developed with the University of California San Diego Division of Extended Studies and the Assembly Bill 2473 Stakeholder Advisory Group as part of DHCS' ongoing efforts to strengthen the SUD workforce.  The curriculum covers 12 core competencies required for counselor certification. For more information and to view a video about ASCEND, visit the DHCS YouTube channel. Registration is available on the University of California San Diego Division of Extended Studies website.

Protect Access to Health Care Act (PAHCA) Stakeholder Advisory Committee (SAC)

On January 14, from 10 a.m. to 1 p.m. PST, DHCS will host the PAHCA-SAC meeting (advance registration required for online participation) at 1700 K Street (first-floor conference room 17.1014), Sacramento. The committee is responsible for advising DHCS on developing and implementing components of PAHCA (Proposition 35).

MCP-Hub Partnerships: Toolkit for Plans and CalAIM Providers  

On December 19, DHCS, in partnership with the California Health Care Foundation (CHCF) and Aurrera Health Group, published the complete Managed Care Plan (MCP)-Hub Partnerships Toolkit for Plans and CalAIM Providers released during the summer. The new modules highlight existing subcontracting requirements relevant to Hubs, considerations for MCPs and Hubs to operationalize voluntary contracting partnerships, and requirements for MCP oversight and monitoring of contracted Hubs. On January 16, from 1 to 2:30 p.m. PST, DHCS will host a public informational webinar to review the toolkit (advance registration required). Webinar attendees may submit questions in advance to MCQMD@dhcs.ca.gov with the subject line “MCP-Hubs Toolkit."

Coverage Ambassadors Webinar 

​On January 29, from 11 a.m. to 12 p.m. PST, DHCS will host a Coverage Ambassador webinar (advance registration required). 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. Please visit the Coverage Ambassador website for more information and to subscribe to receive regular updates, newsletters, and webinar reminders.