July 7, 2025
Top News
Federal Legislation
The recently signed
House Resolution (H.R.) 1, the federal budget reconciliation bill, will significantly reduce funding for Medi-Cal, CalFresh, and other safety net programs that are lifelines for millions of Californians. DHCS leaders have emphasized that these cuts pose real risks to essential services that support the health, stability, and economic security of families and communities across California. DHCS is reviewing the impacts of these changes and will provide more information and direction as it becomes available.
DHCS State Budget Highlights
On June 27, Governor Newsom signed the fiscal year 2025-26 state budget. DHCS will publish budget highlights later this month. In the meantime, please see the Governor's Office
press release on the budget.
DHCS Releases Latest Enhanced Care Management and Community Supports Quarterly Report
On July 3, DHCS published the latest
quarterly report on
Enhanced Care Management (ECM) and Community Supports, with
new data from October to December 2024. The report highlights continued growth and positive impacts from these services:
- Since ECM launched in January 2022, more than 326,000 Medi-Cal members have received this benefit, which provides comprehensive, person-centered care coordination for people with complex needs.
- In the last quarter of 2024 alone, nearly 150,000 members received ECM services, including more than 31,000 children and youth under age 21. This is nearly four times more than when services for these groups began in mid-2023. Community Supports also continued to expand.
- As of December 2024, more than 368,000 Medi-Cal members had accessed these benefits, with more than 920,000 total services delivered to address key needs like housing and nutrition.
The report demonstrates progress in helping members live healthier, more stable lives, and the growing capacity of provider networks across the state to deliver these services effectively.
Program Updates
Federal Update: Guidance for Medi-Cal and Family PACT Providers Issued in Response to H.R. 1
On July 4, the President signed H.R. 1, which includes Section 71113, Federal Payments to Prohibited Entities. DHCS issued
guidance to Medi-Cal and Family Planning, Access, Care, and Treatment Program (Family PACT) providers that meet the definition of “Prohibited Entities" under H.R. 1 regarding service delivery and claims submission. In addition, DHCS issued
All Plan Letter (APL) 25-011 to provide guidance to Medi-Cal managed care plans on the handling of payments to impacted Medi-Cal and Family PACT providers. For questions about this guidance, please email DHCS' Office of Family Planning at
OFPStakeholder@dhcs.ca.gov.
Behavioral Health Student Loan Repayments
On July 1, the California Department of Health Care Access and Information opened the application period for the
Medi-Cal Behavioral Health Student Loan Repayment Program, which offers financial relief to behavioral health professionals who commit to serving Medi-Cal patients in underserved areas. The program is part of the Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (
BH-CONNECT) initiative's workforce development funding opportunities. A
webinar will be held on July 9, from 1:30 to 3 p.m. PDT, to provide information on eligibility and the application process. A recording of the webinar will be available online within ten days after the webinar date. The application cycle closes on August 15, 2025.
New Doula Benefit Implementation Report Released
On July 1, DHCS posted the
Doula Benefit Implementation Report, as required by Senate Bill 65 (Chapter 449, Statutes of 2021). Beginning on January 1, 2023, DHCS added doula services as a covered Medi-Cal benefit. The Doula Benefit Implementation Report evaluates the first 18 months of implementation, focusing on member utilization, comparison of birth outcomes between Medi-Cal members who used doula support and those who did not, barriers to access, and stakeholder feedback. Utilization is steadily increasing—as of June 30, 2024, more than 1,000 Medi-Cal members utilized one or more doula services, with wide variation by county and Medi-Cal managed care plan. The report also includes recommendations from the
Doula Implementation Stakeholder Workgroup to improve access and streamline implementation. For more information, please visit the
Doula Services as a Medi-Cal Benefit webpage or email
DoulaBenefit@dhcs.ca.gov.
Certified Wellness Coaches Now Eligible for Medi-Cal Reimbursement
On June 24, the federal Centers for Medicare & Medicaid Services (CMS) approved
State Plan Amendment (SPA) 25-0014, making Certified Wellness Coaches (CWC) eligible for reimbursement through Medi-Cal. Employers can now bill Medi-Cal to help offset the cost of hiring and retaining CWCs, strengthening their impact in communities statewide. With nearly 2,500 certified coaches already serving youth across urban and rural communities, this change enhances both career pathways and access to care. The CWC certification, available at no cost, continues to grow as a promising workforce strategy.
Join Our Team
DHCS is hiring for its accounting, Medi-Cal dental,
communications, community services, 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.
Medi-Cal Children's Health Advisory Panel (MCHAP) Meeting
On July 10, from 10 a.m. to 2 p.m. PDT, DHCS will host the quarterly MCHAP meeting at 1700 K Street, Sacramento, CA 95811, in the first-floor conference room (17.1014) or via
public webinar (advance registration required). MCHAP advises DHCS on policy and operational issues that affect children in Medi-Cal. The meeting will provide information about improving children's preventive care outcomes, updates on the California Children's Services Quality Metric Redesign, and details about Medi-Cal vision services.
Protect Access to Health Care Act Stakeholder Advisory Committee (PAHCA-SAC) Meeting
On July 18, from 9:30 a.m. to 2 p.m. PDT (the time is subject to change), DHCS will host the PAHCA-SAC meeting (
advance registration for online participation required) at 1700 K Street (first-floor conference room 17.1014), Sacramento. The committee is responsible for advising DHCS on developing and implementing components of the PAHCA of 2024 (Proposition 35).
SAC/Behavioral Health (BH)-SAC Meeting
On July 23, from 9:30 a.m. to 3 p.m. PDT, DHCS will host the hybrid
SAC/BH-SAC meeting (advance registration required for online and in-person participation) at 1700 K Street (first-floor conference room 17.1014), Sacramento. 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. 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
Partnership HealthPlan of California Announces Winners of the Inaugural 2025 CalAIM Make a Difference Award
Partnership HealthPlan of California, a Medi-Cal managed care plan, launched the CalAIM Make a Difference Award program, awarding a total of $182,500 to the
inaugural winners. The award recognizes the leadership and commitment to advancing the California Advancing and Innovating Medi-Cal (CalAIM) initiative. According to Partnership HealthPlan, winning organizations exemplify dedication and innovation while making a meaningful impact in their communities and were selected based on several factors, such as success in building capacity over the past year, demonstrated commitment to quality, and timeliness in reporting submissions. Combined, the awardees provide services to all 24 counties in Partnership HealthPlan's service area.
PATH Justice-Involved Round 4 Application
On May 12, DHCS opened the Providing Access and Transforming Health (PATH) Justice-Involved Round 4 application window. The deadline to apply for Round 4 funding is July 11, 2025. Only PATH Justice-Involved Round 3 awardees are eligible for the Justice-Involved Round 4 funding opportunity, and applications must be submitted on behalf of county sheriff's offices, county probation offices, the California Department of Corrections and Rehabilitation, and county behavioral health agencies. Eligible agencies will receive email communications with instructions on how to apply. For more information about PATH Justice-Involved Round 4, please visit the
PATH Justice-Involved webpage. All resources are available under “Reference Materials." Please submit questions to
justice-involved@ca-path.com.
Updated BHSA County Policy Manual
On June 30, DHCS released updates to the Behavioral Health Services Act (BHSA) County Policy Manual, reflecting content from Module 3, which was reviewed during the public comment period held between April 7 and April 25, 2025. The updates provide clear guidance and timelines for counties as they prepare to submit their draft Integrated Plan (due March 31, 2026) and final Integrated Plan (due June 30, 2026). These updates will assist counties, behavioral health providers, Tribal partners, and other behavioral health partners in increasing accountability and improving transparency and efficiency in California's behavioral health system. For specific questions about the policy manual or any technical requests, please email BHTinfo@dhcs.ca.gov.
