February 9, 2026

Top News

New DHCS Webpages: Federal Policy Impacts on Medi-Cal 

DHCS launched a new set of webpages to help counties, health plans, providers, and community partners track federal actions that affect Medi-Cal, including H.R. 1, and California's response. The site covers Medi-Cal eligibility, benefits, behavioral health, reproductive health, financing, and Section 1115 waivers. You'll also find California's ​implementation plan for eligibility and enrollment changes under H.R. 1. (NOTE: if you missed the February 5 webinar, the implementation plan presentation and slides are now available.)

Managed Care Organization Tax Update  

On February 2, the federal Centers for Medicare & Medicaid Services (CMS) finalized a rule that changes federal requirements for health care-related taxes used to finance Medicaid programs. The rule leaves intact California's Managed Care Organization (MCO) Tax through its current authorized term (December 31, 2026), after which the same tax structure will no longer be federally approvable. DHCS will work closely with partners and stakeholders on next steps related to the tax and related payment methodologies that are needed to comply with federal requirements. For more details, see the CMS Final Rule and Fact Sheet.

Program Updates

Medi-Cal 1915(i) Home and Community-Based Services State Plan Amendment

DHCS is seeking input from members, providers, and other interested stakeholders regarding the renewal application for the Medi-Cal 1915(i) Home and Community-Based Services State Plan Amendment (SPA 26-0009). The California Department of Developmental Services intends to renew the SPA for a five-year period (October 2026 through September 2031). The renewal presents rate changes and new methodologies, provider types, and services from SPA 25-0040, which is pending CMS approval. The state anticipates that SPA 25-0040 will be approved by CMS prior to the approval of SPA 26-0009. Written comments may be emailed to Federal.Programs@dds.ca.gov or PublicInput@dhcs.ca.gov. Please indicate SPA 26-0009 in the subject line or message. Comments must be received no later than March 4. Please note that comments will continue to be accepted after March 4, but DHCS may not be able to consider those comments prior to the initial submission of SPA 26-0009 to CMS.

Reminder: ICD-10-CM Diagnosis Codes on Pharmacy Claims

On February 9, an alert will be published reminding pharmacy providers and prescribers to include ICD-10-CM diagnosis code(s) on pharmacy claims. Effective fall 2026, ICD-10-CM diagnosis code(s) will be required for pharmacy claim adjudication to better implement appropriate utilization management controls, including prior authorization requirements. This policy will apply to all pharmacy claims submitted on and after the implementation date, including refill claims, to help ensure and promote clinical appropriateness, essential need, efficacy, member safety, and quality of care. Recognizing the need for systems coordination, Medi-Cal Rx has initiated a robust education and outreach campaign to help pharmacy providers and prescribers understand and adopt the management controls. More detailed information, including the implementation plan and resources, will be published on the new ICD-10-CM Code Requirements tab on the Education & Outreach page. The Emergency Fill policy will remain in effect and not be impacted by this requirement. For more information about the Emergency Fill policy, please refer to the Emergency Fills section in the Medi-Cal Rx Provider Manual.

Smile, California Mobile Dental Van Event (Calaveras County)

On February 23 and 24, from 8 a.m. to 5 p.m. PST, mobile dental van events will be held in Calaveras County to provide free dental services. The van will be located at 1299 Gold Hunter Road in San Andreas. Smile, California will support the event with a custom flyer and social media posts. Visitors are encouraged to call 1-888-585-3368 to pre-register and complete the consent forms before the event.

Join Our Team

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

• ​​Chief, Strategic Planning and Workforce Development Division. The Chief serves as the principal advisor and administrator for strategic planning; enterprise governance and portfolio management (in partnership with the Senior Advisor for Policy and Program Support and Enterprise Technology Services); leadership meeting facilitation; Director's Office operations (including Department-wide communications and executive hiring, onboarding, and offboarding); employee engagement and belonging initiatives (including Diversity, Equity, and Inclusion); workforce development; and succession planning. Applications must be submitted by February 10.

DHCS is also hiring for its Accounting, Medi-Cal Eligibility, Contracts, 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 DHCS at the appropriate contact email address at least ten working days before the meeting.

Community Assistance, Recovery, and Empowerment (CARE) Act Working Group Meeting

On February 11, from 10 a.m. to 3 p.m. PST, the California Health and Human Services Agency will hold its CARE Act Working Group meeting. The meeting will include a recap of the previous meeting and look ahead to 2026. Representatives from San Diego County Behavioral Health Services will share an implementation update, including their latest data, outcomes, and best practices. Representatives from Neimand Collaborative will discuss recent and upcoming CARE Act communication strategies. Additionally, participants will hear from psychiatry subject matter experts on CARE agreements/plans, as well as from Health Management Associates representatives who will provide a look ahead at the elements of the 2026 CARE Act Annual Report. Please see the CARE Act Working Group website for more information.

Skilled Nursing Facility Value Strategy Webinar

On February 20, from 9:30 a.m. to 11 a.m. PST, DHCS will host an all-comer webinar for stakeholders who want to learn more about the development of DHCS' comprehensive value strategy for Medi-Cal skilled nursing facility (SNF) services. The SNF Value Strategy will inform the reauthorization of the Medi-Cal Long-Term Care (LTC) Reimbursement Act, which governs the overall Medi-Cal financing framework for Freestanding SNFs. The Act's upcoming renewal provides a historic opportunity to build upon the California Advancing and Innovating Medi-Cal (CalAIM) LTC Carve-in and AB 186 Nursing Facility Financing Reform programs. The SNF Value Strategy will include a landscape analysis of payment methodologies used by Medi-Cal, Medicare, and other payers. It will also include a multi-year roadmap to drive system transformation. If you have questions, please email SNFValueStrategy@dhcs.ca.gov. Visit the DHCS SNF Value Strategy webpage for more information.

Equity-Centered Sterilization Counseling: Evidence, Consent, and Practical Pearls

On February 20, from 12 to 1:30 p.m. PST, DHCS and the University of California, San Francisco will host a webinar (advance registration required) to explore strategies to provide informed, compassionate, and patient-centered counseling to individuals considering sterilization. Presenters will discuss how to support autonomy and informed decision-making within the context of clinical, ethical, and policy considerations. Participants will gain insight into current evidence, communication approaches, and referral pathways that promote equitable access to sterilization and related reproductive health services. For those unable to attend the live webinar, a transcript and recording, along with additional resources, will be available at a later date on the Family PACT (Planning, Access, Care, and Treatment) website.

Justice-Involved Reentry Initiative: Upcoming Live Training Webinars

Medi-Cal is offering a live Justice-Involved Reentry Initiative Overview. This course introduces the Justice-Involved Reentry Initiative and outlines its purpose and structure. Attendees will learn about provider roles and requirements, including participation standards and coordination expectations. The training webinars are scheduled for February 24 (10 to 11:30 a.m. PST), February 25 (1 to 2:30 p.m. PST), and February 26 (10 to 11:30 a.m. PST). Providers must register for the webinar through the Medi-Cal Learning Portal and select the session they plan to attend to ensure enrollment. To view the webinar, attendees must have internet access and a user profile in the portal (Note: Google Chrome is the recommended web browser for accessing the portal). Detailed instructions about the registration process and accessing webinar classes are available on the Outreach & Education page of the Medi-Cal Providers website. For additional assistance, contact the Telephone Service Center at 1-800-541-5555.

Stakeholder Advisory Committee (SAC)/Behavioral Health (BH)-SAC Meeting

On February 25, from 9:30 a.m. to 3 p.m. PST, DHCS will host the hybrid SAC/BH-SAC meeting (advance registration required for online and in-person participation) at 1501 Capitol Avenue (First Floor Conference Room 71.1316), Sacramento, CA 95814. SAC provides DHCS with valuable input and feedback on efforts to provide equitable access to quality health care. BH-SAC provides DHCS with input on behavioral health initiatives and was created as part of the ongoing effort to integrate behavioral health with the greater health care system. Updates will be provided on H.R. 1, the Justice-Involved Reentry Initiative, and Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) policy and implementation. The meeting will also serve as a CalAIM Section 1115 waiver renewal public hearing. The agenda and other meeting materials will be posted as the meeting date approaches. For more information, please email SACinquiries@dhcs.ca.gov or BehavioralHealthSAC@dhcs.ca.gov.

In Case You Missed It

DHCS Releases Latest ECM and Community Supports Quarterly Report

On January 29, DHCS published the latest data update on Enhanced Care Management (ECM) and Community Supports, covering data from January 2022 through June 2025. These services help Medi-Cal members stay healthier and avoid costlier health care services, such as emergency department visits and hospital stays.