​December 29, 2025

Dear Partners and Stakeholders,

As 2025 comes to a close, we want to extend our heartfelt thanks to our partners, advocates, and stakeholders for your continued commitment and collaboration to transform California's health care system. This year, we built on bold reforms and deepened our focus on equity, innovation, and whole-person care—all while navigating challenges stemming from federal changes, state budget shortfalls, and preparing for what's ahead.

From expanding Medi-Cal's California Advancing and Innovating Medi-Cal (CalAIM) services and launching new tools to support data-driven care delivery, to strengthening behavioral health infrastructure and improving maternal health outcomes, DHCS made real progress in delivering care that is more accessible, coordinated, and person-centered. We also streamlined services for people with both Medi-Cal and Medicare, and became the first state to launch Medi-Cal-funded pre-release services in state prisons and county correctional facilities—each milestone a step toward a healthy California for all.

Below, we're proud to share our Top 10 Highlights of 2025—a reflection of what's possible when we listen to communities, act with urgency, and work together to improve lives.

1. Putting Member​s First: Empowering and Engaging Californians in Their Care

In 2025, DHCS reaffirmed its commitment to transforming Medi-Cal into a member-centered system—one that meets people where they are and empowers them to thrive. We prioritized clear, culturally responsive communications that help members navigate care with confidence. Through the updated Comprehensive Quality Strategy, we advanced a vision of people-first, whole-person care—committed to designing programs that not only treat illness, but also promote wellness, dignity, and equity.

When wildfires hit Southern California, DHCS responded quickly by simplifying enrollment, waiving some requirements for prescriptions and medical equipment, and working with health plans to activate emergency protocols. At the same time, we made sure members knew how to access care through timely, multilingual outreach.

DHCS also introduced our new Medi-Cal Voices and Vision Council, which brings Medi-Cal members and caregivers together with Department leadership, health plan executives, providers, and advocates for conversations about implementing the Medi-Cal program. This council builds on the Medi-Cal Member Advisory Committee, which centers our commitment to engaging with and hearing from members directly.

​2. Building Medi-Cal Capacity, Expanding Access, and Delivering Results

Through the Providing Access and Transforming Health (PATH) initiative, DHCS has invested more than $1.29 billion to strengthen the capacity of community-based organizations, counties, Tribes, and other partners to deliver Enhanced Care Management (ECM) and Community Supports.

These investments are paying off. ECM enrollment has grown by 61 percent since last year. Community Supports enrollment has grown by 62 percent over the same time. ECM for people experiencing homelessness also surged, with a 172 percent increase among children and youth and an 86 percent increase among adults. To date, more than 350,000 unique members have received ECM, and more than 400,000 unique members have received a Community Supports service.

These services help members stay healthier and avoid costly care. DHCS' Community Supports Annual Report shows that nine of 12 Community Supports covered under In Lieu of Services authority are already cost-effective, and the remaining three show cost reductions and are expected to be cost-effective over time. Further, new analysis shows that two Community Supports covered under the CalAIM section 1115 waiver—Recuperative Care and Short-Term Post-Hospitalization Housing—are also already cost effective.

Together, these efforts are breaking down traditional walls of health care—extending beyond clinics and hospitals into homes and communities, coordinating care across systems, and delivering in-person support to those who need it most.

3. Mental Health for All: Building a Stronger Behavioral Health System

In 2025, DHCS took major steps to advance the Governor's Mental Health for All vision, expanding access to care for Californians with the greatest behavioral health needs.

Through the Bond Behavioral Health Continuum Infrastructure Program (BHCIP), we awarded $3.3 billion in competitive grants to support 124 projects across 42 counties—adding more than 5,000 residential beds and nearly 22,000 outpatient treatment slots. These facilities will expand access to a full range of behavioral health services, from crisis stabilization and residential treatment to outpatient care and supportive housing—providing support to Californians close to home. We will be awarding more than $1 billion in spring 2026, prioritizing communities that have historically faced barriers to treatment—successfully distributing the entire mental health facility bond funding in less than two years from when California voters approved them.

We also equipped counties with new tools and guidance to lead the implementation of the Behavioral Health Services Act (BHSA) and bring these changes to life. The BHSA County Policy Manual and County Portal offer interactive resources, templates, and technical assistance to help local leaders design and implement integrated systems of care in partnership with local stakeholders. Together, we are transforming the behavioral health system, ensuring Californians have access to timely, coordinated, and equitable services, no matter where they live.

4. Launching Medi-Cal Connect: A New Era of Data-Driven Care

DHCS launched Medi-Cal Connect, a new data platform designed to modernize how data is used to improve care and health outcomes. The platform securely brings together claims and administrative data from across sectors (health care, behavioral health, social services, and more) to give Medi-Cal managed care plans, county behavioral health plans, providers, and state agencies a more complete view of member needs and population trends.

Medi-Cal Connect also helps identify high-risk individuals through a statewide risk stratification algorithm, flags service gaps to support care coordination, and enables more personalized, whole-person support. Built with user feedback in mind, the platform will continue to evolve—driving smarter decisions, stronger partnerships, and a more connected, transparent Medi-Cal system that puts members first.

5. Expanding Access to Substance Use Disorder Treatment

DHCS expanded access to substance use disorder (SUD) treatment and lifesaving prevention and recovery services through targeted investments and statewide collaboration. Key highlights include:

• Expanding access to medications for addiction treatment through policy, funding, and technical assistance.
• Innovating and expanding access to care provided by Narcotic Treatment Programs, including mobile programs and medication units.
• Launching Emergency Medical Services-led buprenorphine pilot programs.
• Distributing naloxone through the Naloxone Distribution Project, which has led to more than 400,000 reported overdose reversals.

To advance critical prevention, treatment, and recovery services, DHCS hosted regional summits focused on incorporating clinical guidelines and tenets of harm reduction to promote patient-centered care within a chronic disease management framework, and convened more than 1,000 professionals from the field at its annual SUD Conference to share best practices and strengthen partnerships. We also released the first California Opioid Settlements Annual Expenditures Report to promote accountability and transparency.

Together with new treatment facilities funded through BHCIP, expanded tools to help people find care, and increased investments in the behavioral health workforce, California is building a more responsive, equitable, and effective system to prevent and treat SUDs.

6. Transforming Youth Behavioral Health

The Children and Youth Behavioral Health Initiative (CYBHI) continues to reshape how young Californians access mental health and SUD services. In 2025, the initiative expanded prevention, early intervention, and whole-person care across schools, communities, and digital platforms, helping more children, youth, and families get support when and where they need it.

A major milestone was the growth of the CYBHI Fee Schedule, which helps schools and higher education institutions deliver behavioral health services directly on or near campus. By December 1, more than 500 Local Educational Agencies and Institutions of Higher Education had enrolled, and schools received $2.7 million in reimbursements, providing 37,000 services to more than 8,350 students statewide—all at no cost to families.

Digital tools also played a central role in expanding access. BrightLife Kids and Soluna have reached more than 420,000 youth, offering free, culturally responsive behavioral health support. In April, through a partnership with the Child Mind Institute, DHCS launched Mirror, a free journaling app that helps teens and young adults build emotional awareness and resilience.

7. Simplifying Care for Dual Eligible Members

During the 2025 Medicare open enrollment period, DHCS took a major step toward simplifying care for Californians dually eligible for Medicare and Medi-Cal.

Starting in 2026, Medi-Medi Plans—a type of Medicare Advantage plan that integrates Medicare and Medi-Cal benefits—are expanding from 12 counties to 41, offering coordinated care to more than 461,000 eligible members across the state.

These plans offer members a single ID card, one care team, and seamless access to Medicare and Medi-Cal services. They also include wraparound supports and specialized care coordination, making it easier for members to get the help they need, when and where they need it.

8. Launching the Justice-Involved Reentry Initiative

In October 2024, California became the first state to provide Medi-Cal-funded pre-release services inside its prisons, jails, and youth correctional facilities—a major milestone in improving health outcomes for justice-involved individuals.

Through the Justice-Involved Reentry Initiative, DHCS partnered with the California Department of Corrections and Rehabilitation and counties to connect incarcerated individuals with chronic conditions, mental health needs, or SUDs to vital services before release.

These include ECM, Community Supports, linkages to primary and behavioral health care, and prescription medications in-hand upon release—all designed to support a smoother transition back into the community and reduce the risk of recidivism. As of December 1, more than 40,000 Medi-Cal members have been identified as eligible for the pre-release services program in 64 county correctional facilities (in 13 counties) and all 31 state prison facilities.

Through this initiative, California is taking bold steps to address the historically poor health outcomes of justice-involved populations, building a coordinated reentry process that prioritizes continuity of care, dignity, and long-term stability for individuals returning home.

9. Taking Steps Toward Equitable, Whole-Person Maternal Health Care

DHCS deepened its commitment to maternal health equity by strengthening services for pregnant and postpartum Medi-Cal members—with a focus on improving outcomes and reducing disparities.

A major milestone was federal approval to participate in the Transforming Maternal Health Model, a 10-year, $17 million initiative to improve maternal health outcomes. The model launched in five Central Valley counties with high maternal health risks—Fresno, Kern, Kings, Madera, and Tulare—and will bring new resources to expand access to midwives, doulas, and birth centers; improve data sharing; and support workforce development and care coordination.

DHCS also introduced the Birthing Care Pathway, a roadmap to support members from conception through 12 months postpartum. It outlines a coordinated approach for managed care plans, providers, counties, and community partners to deliver whole-person, culturally responsive care.

Additional efforts included the first Doula Benefit Implementation Report, highlighting growing use and equity-focused recommendations, and a new Postpartum Pathway concept paper that outlines a coordinated model to address both medical and social needs after birth.

Together, we can ensure every birthing person has access to high-quality, respectful, and comprehensive care.

10 Building Smarter, More Integrated Systems

In 2025, DHCS advanced efforts to modernize and integrate systems—improving efficiency, reducing administrative burden, and making it easier for members and providers to navigate care. These innovations are helping the Department break down silos and deliver services in a more coordinated, responsive way. Key improvements included:

• A new online experience for Medi-Cal members and potential applicants, designed with input from our Medi-Cal Member Advisory Committee. The site makes it easier for Californians to learn about eligibility, apply for coverage, and understand benefits.
• A new digital hospice election form, allowing hospice agencies to electronically submit documentation when a Medi-Cal member begins hospice care. This ensures faster processing, fewer errors, and better coordination across managed care and fee-for-service systems.
• A modernized licensing and certification portal for behavioral health providers, streamlining applications and reducing errors. Now available for SUD license and certification renewals, the portal will expand to include additional provider types over time.

These highlights are made possible by the dedication, creativity, and hard work of Team DHCS—nearly 5,000 public servants committed to a healthy California for all.

Thank you for being part of this journey and for your continued commitment to building a more equitable, person-centered health care system. Together, we are transforming care and transforming lives.

Yours in service,
Michelle Baass
Director​