May 27, 2025

Top News

New Behavioral Health Services Act (BHSA) Report Supports Revenue Stability and Planning

DHCS released the BHSA Revenue Stability Workgroup Report with recommendations to reduce the variance of county Behavioral Health Services Funds (BHSF). The recommendations are intended to help counties manage revenue more consistently, maintain services through economic ups and downs, and bring greater predictability and accountability to local behavioral health care funding.

The BHSA Revenue Stability Workgroup, comprising state leaders and counties, was required to develop and recommend solutions to reduce BHSA revenue volatility and propose appropriate prudent reserve levels to support the sustainability of county programs and services. It reviewed and analyzed current and historical revenues generated by the MHSA and the BHSA and prudent reserve levels to develop the recommendations.

The State Controller's Office will continue to follow the current process to distribute BHSA local assistance funds to counties monthly. The goal is to balance local assistance revenue allocation and program stability, helping counties effectively plan and provide critical behavioral health services during revenue downturns. Highlights include:

• Annual spending floors based on a three-year average, adjusted for inflation.
• New reserve limits (10-15 percent, depending on county size).
• One-time requirement to spend down excess reserves between 2026–2029.
• Flexibility to adjust budgets if revenues drop.
• More transparency, with required public reporting and community input.

This approach supports California's Mental Health for All vision by promoting stability, transparency, and community-centered behavioral health care. State legislation is required to enact recommendations from the BHSA Revenue Stability Workgroup Report.

Community Supports Showing Early Cost-Effectiveness While Meeting Medi-Cal Member Needs

DHCS recently submitted to the Centers for Medicare & Medicaid Services (CMS) its Community Supports, or In Lieu of Services (ILOS), Annual Report[TO1] , which reviews the progress and impact of Medi-Cal Community Supports in 2024. For the first time, the report also includes a cost-effectiveness analysis for 2023. The report highlights key achievements, such as reduced emergency room visits, hospitalizations, and long-term care use, pointing to early evidence of both improved health outcomes and reduced costs when compared to the services they are replacing, such as inpatient, emergency department, and long-term care services. Of the 12 Community Supports studied, nine are already proving cost-effective, and the remaining three are expected to prove to be cost-effective over time.

The report also outlines operational improvements made by DHCS and managed care plans (MCP) to expand services, grow provider networks, and support implementation. While progress has been significant, the report also identifies ongoing challenges and opportunities for further improvement, ensuring these services continue to evolve to meet the needs of Medi-Cal members.

Program Updates

Medi-Cal Commercial MCP Procurement Update

DHCS will postpone the next commercial Medi-Cal MCP procurement by at least two years. The next competitive procurement for MCPs will begin no sooner than 2029, with contracts expected to take effect no sooner than 2031. DHCS previously indicated that the re-procurement for commercial MCPs would be conducted once every five years. Under this assumed timeline, DHCS would have had to release the Request for Proposal (RFP) in 2027 for a contract effective date of January 1, 2029.

The additional time will allow DHCS to focus on critical California Advancing and Innovating Medi-Cal (CalAIM) initiatives. It will also help maintain stability for members and support ongoing improvements to care quality and access, while also supporting the long-term success of the Medi-Cal managed care program.

In accordance with current policy, MCP contracts will be renewed annually following the contractual requirements identified in Exhibit E, 1.1.15 of the 2024 Managed Care Boilerplate Contract. Current MCP contracts will be extended from January 1, 2026, to December 31, 2026, by the established annual process. DHCS remains committed to fostering an inclusive, flexible, and responsive process that supports the Medi-Cal program and ensures continued equitable access to high-quality care for Californians. Please visit the Medi-Cal Managed Care webpage for more information.

Dental Managed Care Transition

During the week of May 26, DHCS will mail a 30-day notice to about 350,000 Medi-Cal members in Sacramento and Los Angeles counties to notify them of upcoming changes to their dental service delivery, effective July 1, 2025. The member notice explains what is changing, if the member needs to make a plan choice, the member's continuity of care protections, and other important information, and will include a Medi-Cal managed care enrollment packet.

Members in Sacramento County who are currently enrolled in Access Dental Plan or dental fee-for-service (FFS) must select a new Dental Managed Care plan, while members in Los Angeles County who do not choose a Dental Managed Care plan will remain in FFS. Members currently enrolled with Health Net or Liberty will not be affected by these changes. Additionally, changing Dental Managed Care plans will not affect Medi-Cal coverage or benefits.

Medi-Cal Health Care Options is conducting an outbound call campaign to members who receive a managed care enrollment packet. During these calls, HCO representatives will review available Dental Managed Care plan choices, answer questions, and facilitate enrollment in the member's chosen plan over the phone. DHCS developed the Dental Transition Member Notices webpage for members to view notices and other information about the Dental Managed Care transition.

Medi-Cal Enrollment Requirements and Procedures for Pharmacy Providers

Effective August 1, 2025, pharmacy providers that hold a valid Clinical Laboratory Improvement Amendments (CLIA) Certificate of Waiver and current Certificate of California Clinical Laboratory Registration may bill for CLIA-waived tests provided within the pharmacist's scope of practice as defined by the California State Board of Pharmacy and authorized in Business and Professions Code Section 4052.4. Pharmacy providers must apply to enroll in the Medi-Cal program by submitting a Medi-Cal provider enrollment online application, along with all supporting documentation.

On June 10, from 10 to 11 a.m. PDT, DHCS will hold a public stakeholder hearing via webinar (advance registration required) to discuss the draft regulatory provider bulletin entitled, “Medi-Cal Enrollment Requirements and Procedures for Pharmacy Providers that Hold a Clinical Laboratory Improvement Amendments (CLIA) Certificate of Waiver."

Written comments, questions, or suggestions may be submitted during the hearing in the webinar chat. For those unable to attend, written comments must be submitted by 5 p.m. PDT on June 10 to be considered for publication. When submitting written comments, please ensure that the commenter and organization/association being represented are both identified in the comments. Please submit written comments to DHCSPEDStakeholder@dhcs.ca.gov. Based on the public comments received, DHCS will publish the final bulletin on the Medi-Cal providers and DHCS Provider Enrollment Division websites.

Join Our Team

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

• Chief, Capitated Rates Development Division. The Chief leads rate-setting activities for Medi-Cal managed care plans and Programs of All-Inclusive Care for the Elderly organizations. Activities include implementing actuarial methods for establishing capitation rates and overseeing the development and implementation of policies and protocols for reimbursements. Additionally, the Chief ensures financial methodologies are consistent with the efficient delivery of quality health care and comply with state and federal laws, regulations, and rules. Applications must be submitted by May 30.
  

• Assistant Deputy Director (ADD), Enterprise Technology Services (ETS). This new ADD role will build collaborative working relationships with DHCS Executive Staff, program partners, and external stakeholders, and assist with leading DHCS' IT programs and services. Additionally, the ADD will play a vital role in leading the development and implementation of IT policies, system architecture, security, improvements, and solutions for DHCS programs, including Medi-Cal and behavioral health. Applications must be submitted by June 2.

DHCS is hiring for its Medi-Cal managed care, data analytics, Medi-Cal eligibility, and other teams. For more information, please visit the CalCareers website.

Upcoming Stakeholder Meetings and Webinars

DHCS posts upcoming public meetings on the 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.

Coverage Ambassador Webinar Series: Birthing Care Pathway 

On May 29, from 11 a.m. to 12 p.m. PDT, DHCS will hold a Coverage Ambassador webinar that will focus on DHCS' Birthing Care Pathway initiative (advance registration required). The webinar will provide information about maternity services for pregnant and postpartum Medi-Cal members from conception through 12 months postpartum and review highlights from the Birthing Care Pathway Report released on February 4. This initiative helps to ensure Medi-Cal members have access to high-quality, equitable care to improve maternal health outcomes and reduce disparities. Coverage Ambassadors will also learn about DHCS' social media platforms, which offer up-to-date information on relevant topics that can benefit both Coverage Ambassadors and Medi-Cal members. Simultaneous interpretation in Spanish will be offered during the webinar.

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