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SACRAMENTO — The federal Centers for Medicare & Medicaid Services (CMS) has taken the extraordinary step of deferring $1.1 billion in federal funding tied to California’s In-Home Supportive Services (IHSS) program.
This action sends a troubling message about the value CMS places on the essential work IHSS caregivers perform every day and creates significant fiscal strain for California, as the State continues ensuring uninterrupted care for more than 900,000 older adults, people with disabilities, and children who rely on IHSS to live safely at home.
IHSS is a federally approved Home and Community-Based Services (HCBS) program and a cornerstone of California’s long-standing efforts to keep people safe at home and out of costly institutional settings, an approach CMS has consistently encouraged for decades. California has built one of the nation’s strongest HCBS systems, expanding access to in-home services in direct alignment with federal policy and the Americans with Disabilities Act’s mandate to support individuals in the most integrated setting appropriate.
“CMS has used what once was a routine payment reconciliation process with states to undermine exactly what federal HCBS policy has long sought to achieve: helping more people remain safely at home, rather than enter institutions for long-term care,” said State Medicaid Director Tyler Sadwith.
CMS asked why IHSS expenditures have grown in recent years. California immediately explained there are three main factors that have driven increases in IHSS program costs:
The IHSS caseload for individuals eligible for federal financial participation Medi-Cal increased from 613,764 in State Fiscal Year (SFY) 2022-23 to 720,988 in SFY 2024-25, a 17.5 percent increase. The average cost per hour went from $19.00 to $21.03 in the same period, representing an increase of 10.7 percent driven by statewide minimum wage increases and county-negotiated wage rates. Wage increases are a tool to recruit and retain qualified workers in a field experiencing a provider shortage. Finally, the average hours per case modestly increased over the same period due to the higher acuity needs of individuals receiving services in the program.
“The growth in IHSS expenditures over the last several years reflects intentional policy choices to expand access to IHSS,” Sadwith added. “It is the direct and foreseeable result of expanding eligibility, increasing hourly reimbursement rates, increasing utilization consistent with demographic change, and substituting home-based care for institutional placement—outcomes that CMS has repeatedly endorsed and promoted through federal approvals of California’s IHSS and HCBS programs because they deliver care at a fraction of institutional costs.”
Despite these longstanding federal policy goals and federal approvals for IHSS program growth, CMS’ deferral notice states that CMS is deferring these funds simply because the growth rate in California’s IHSS program is greater than other states.
In addition, CMS’ letter cites program-integrity concerns, but provides no specifics as to what these concerns are other than “statistical outliers.” Program integrity is a core Medi-Cal function focused on ensuring public dollars are spent the right way through extensive oversight, fraud prevention, and enforcement efforts. California maintains strong, longstanding IHSS oversight systems, including annual assessments, electronic timesheets, verification tools, and coordinated state-county review processes.
“IHSS caregivers help people get out of bed, prepare meals, bathe safely, and remain in their homes with dignity. We are grateful for the work they do every day,” Sadwith added. “CMS’ decision recklessly disregards the people who depend on IHSS and the individuals who care for them every day.”
In addition to the IHSS-related deferral, CMS also included roughly $200 million associated with long-standing administrative and technical claiming items that the state has already been working through with CMS. These items are expected, unrelated to IHSS services or caregiver payments, and part of ongoing federal review processes. DHCS voluntarily implemented a 15 percent reduction in administrative claims beginning in early 2025 as part of a comprehensive review to ensure federal funds are not used for state-only programs. These administrative claims are related to program administration and agency operation costs, not health care. DHCS has submitted comprehensive documentation to CMS demonstrating compliance with claiming processes and updated our reduction to account for this review. DHCS continues to work with CMS to provide support for these updated adjustments.
California calls on CMS to immediately restore IHSS funds and will take every step necessary to protect IHSS members and the caregivers who support them.
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SACRAMENTO — The Department of Health Care Services (DHCS) today released its 2025 BrightLife Kids and Soluna Impact Report, detailing how California’s free behavioral health platforms have reached more than 500,000 users, including children, youth, young adults, and families, across all 58 California counties. Launched in 2024, the platforms offer free confidential mental health support and resources to all Californians, regardless of insurance or immigration status.
“The data reinforce what we’ve heard from children and families across California: Soluna and BrightLife Kids are a key resource to support our youth,” said DHCS Director Michelle Baass. “By investing in easy to use, accessible tools, California is improving the mental health of children today so they can have the bright futures they deserve.”
WHY THIS MATTERS: BrightLife Kids and Soluna reduce barriers to mental health care, particularly for youth in rural areas, low-income communities, and underserved populations. Early data show the platforms are advancing equity, with most users coming from communities with the greatest social and health inequities.
The report highlights substantial growth resulting from community outreach and engagement: more than 112,000 coaching sessions delivered through January 2026, with 98 percent of participants reporting satisfaction. Half of Soluna users and three quarters of BrightLife Kids users report this is their first time accessing professional behavioral health support. Additionally, more than 5,000 Californians have been referred to community-based providers when they need a higher level of care or other social support.
Early evaluation data—now under peer review—from Northwestern University’s Lab for Scalable Mental Health show Soluna users experienced significant reductions in distress after one month, with benefits sustained at three months. BrightLife Kids users similarly reported progress, with parents noting improved ability to support their children.
WHAT THEY ARE SAYING: “Before Soluna, I didn’t really know where to start if I wanted to talk to someone professionally…There’s a lot of really quick, fast features that don’t require a lot of time, but do have a really strong impact,” said Sierra (below), a Soluna young adult ambassador.
“BrightLife Kids helps me so much by giving me the tools on how to be a better, more present mom,” said Lillian (below), parent of a 6-year-old daughter.
ABOUT THE PLATFORMS: BrightLife Kids and Soluna offer free coaching, peer communities, personalized goalsetting tools, and care navigation. Services are available online, in mobile app stores, in English and Spanish, and through telephone-based coaching available in 17 languages.
BIGGER PICTURE: The platforms are part of California’s CalHOPE program and the Children and Youth Behavioral Health Initiative (CYBHI), both of which represent key components of Governor Newsom’s Master Plan for Kids’ Mental Health, a historic statewide investment designed to strengthen mental health and well-being for children and youth using a comprehensive “whole child” approach.
DHCS encourages families and youth ages 0–25 to access free behavioral health support through BrightLife Kids and Soluna and invites partners to review the full 2025 impact report to learn more about statewide outcomes and impact.
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SACRAMENTO — The California Department of Health Care Services (DHCS) and the California Department of Justice (DOJ), working in close coordination with the California Department of Public Health (CDPH), have taken decisive action to dismantle a large-scale identity theft and hospice fraud scheme targeting the Medi-Cal program. This coordinated enforcement effort underscores California’s commitment to protecting Medi-Cal members and safeguarding taxpayer dollars from fraud, waste, and abuse.
Working together, DHCS and DOJ’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA) confirmed that transnational criminal networks used stolen identities to fraudulently enroll individuals in Medi-Cal and bill for hospice services that were never provided. The scheme involved 14 fraudulent hospice providers and resulted in more than $267 million in improper billing. DHCS is working closely with federal partners to determine any required repayment obligations under Medicaid rules, and will pursue recovery from the fraudulent actors wherever possible, with recovery efforts already underway, including the recovery of more than $70 million to date in coordination with state and federal law enforcement.
“For years, California has led the charge to protect public programs from fraud and abuse. We hold accountable to the fullest extent of the law anyone who tries to rip off taxpayers and take advantage of public programs, particularly those as sensitive as hospice care. I thank DHCS and DOJ for their swift work to bring these charges forward. Since these are state charges, Donald Trump cannot pardon these individuals in exchange for campaign donations,” said Governor Gavin Newsom.
California acted swiftly to protect Medi-Cal and taxpayer dollars by:
“This investigation demonstrates what California can accomplish when our state agencies work together with urgency and purpose,” said California Health and Human Services Secretary Kim Johnson. “Protecting the millions of Californians who depend on Medi-Cal to meet their health needs is our priority, and we will not tolerate bad actors. DHCS moved swiftly to stop these payments, disenroll fraudulent accounts, and refer perpetrators for criminal prosecution. Our work is not done, and we will continue strengthening the safeguards that keep Medi-Cal sound and trustworthy for the people it was designed to serve.”
Large-scale fraud involving identity theft and coordinated criminal networks requires careful, evidence-based investigation. DHCS and its partners must confirm each affected identity, avoid alerting perpetrators, and build cases that meet legal standards for suspensions, license actions, and prosecution. DOJ has executed search warrants, made arrests, and filed criminal charges to dismantle the network and ensure the perpetrators face full accountability under state law. This deliberate approach protects legitimate Medi-Cal members and ensures enforcement actions are strong enough to hold bad actors fully accountable.
This action builds on California’s statewide hospice enforcement efforts, including the CDPH-led California Hospice Fraud Task Force, which strengthens coordination among state departments to identify fraud, share information, and act quickly to stop bad actors. These efforts have resulted in more than 280 hospice license revocations and hundreds of ongoing investigations.
“Fraud is a direct attack on the health and well‑being of Medi‑Cal members, and we will not hesitate to act,” said DHCS Director Michelle Baass. “Our safeguards worked quickly and effectively—identifying suspicious activity, stopping improper payments in their tracks, and prompting immediate suspension of the providers involved. In coordination with the California Department of Justice’s Division of Medi‑Cal Fraud and Elder Abuse, California’s Medicaid Fraud Control Unit, we are pursuing full accountability while reinforcing our oversight systems to protect Medi-Cal members and the taxpayers who fund this program.”
“This isn’t a political game for us. This is about protecting taxpayer dollars, protecting programs sick and vulnerable Californians rely on, and protecting our state,” said Attorney General Rob Bonta. “Over the life of this fraud scheme, not a single legitimate hospice service was ever provided, yet millions were billed in a brazen, calculated scheme that exploited the Medi-Cal system. This wasn’t a mistake or a loophole; it was deliberate fraud. This kind of abuse undermines trust, drains critical resources, and threatens care for those who truly depend on it. This is a perfect example that we have taken a firm stand to investigate, prosecute, and shut down hospice fraud wherever it exists.”
A MULTIPRONGED APPROACH TO FRAUD PREVENTION: DHCS’ program integrity safeguards were critical in detecting and stopping this scheme, and the Department is implementing additional measures to prevent similar fraud from occurring in the future. The comprehensive strategy includes:
DHCS manages more than $200 billion annually to serve more than 14 million Californians who rely on Medi-Cal. Protecting program integrity ensures that every dollar goes to those who truly need care. To proactively combat hospice fraud, Governor Gavin Newsom signed legislation in 2021 that banned new hospice licenses in California, a moratorium that remains in effect. He also created the statewide Hospice Fraud Task Force to ensure rapid information-sharing and support license revocation, payment suspension, and criminal case development. Learn more about DHCS program integrity.
REPORTING SUSPECTED FRAUD: DHCS encourages anyone who suspects Medi-Cal fraud to report it immediately:
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WHAT YOU NEED TO KNOW: California continues its multi-agency actions to protect Californians and taxpayer dollars from fraudulent or unsafe hospice activity. Yesterday, investigators from the California Department of Public Health (CDPH), California Department of Health Care Services (DHCS), and California Department of Tax and Fee Administration (CDTFA) conducted onsite compliance reviews in Los Angeles County.
LOS ANGELES – As part of ongoing efforts to protect patients and safeguard public health programs, approximately 80 surveyors and investigators from CDPH, DHCS, CDTFA, and partner agencies conducted compliance reviews at a Van Nuys location subject to “viral” videos regarding hospice care.
While online claims pointed to numerous hospices tied to potential fraud at this location, nearly 9 out of 10 entities that have utilized this address for their business cannot even bill the state-run Medi-Cal program for hospice care.
A review of state records tied to this location identified the following:
When some of the businesses sought to establish hospices, California stopped them. In 2021, California took decisive action to place a moratorium on new hospice licenses. The state’s prevention efforts worked: Upwards of 60 percent of hospice entities using the Van Nuys address were denied a license because of California’s moratorium.
PROTECTING THE HOSPICE SYSTEM: That hasn’t slowed enforcement. The state treats all reports of regulatory non-compliance, whether received in-person, through the mail, or online as complaints, from members of the public and is inspecting them under its purview as part of its everyday work to protect taxpayers, root out fraud, and increase the quality of hospice care.
“As part of our ongoing work, we are in Los Angeles County actively investigating hospice providers,” said CDPH Director and State Public Health Officer Dr. Erica Pan. “Protecting patients and safeguarding the integrity of our health care system remains our top priority, and we will continue to hold providers accountable.”
“DHCS is shoulder to shoulder with CDPH on this effort,” said DHCS Director Michelle Baass. “Whether our teams are in the field conducting reviews or verifying enrollment and billing, when we suspect fraud, we act. And when we determine there is a credible allegation of fraud, we refer cases to the California Department of Justice. Our shared commitment is protecting Medi Cal members, safeguarding taxpayer dollars, and ensuring hospice services are delivered safely, legally, and with integrity.”
“The Department of Tax and Fee Administration is happy to lend our expertise and support to our partner agencies to review concerns and verify compliance,” said CDTFA Director Trista Gonzalez. “Our focus is on ensuring businesses are operating within the law and that public funds are protected.”
HOLDING BAD ACTORS ACCOUNTABLE: Since Governor Newsom’s 2021 moratorium, California has revoked 280+ hospice licenses and placed 300 more under investigation — among the most aggressive enforcement actions in the nation. In addition to CDPH’s licensing enforcement, DHCS has strengthened hospice billing safeguards by requiring its own verification of hospice elections before any claim can process, using a DHCS issued indicator code that only appears after documentation is approved.
Under the Trump Administration, the Centers for Medicare & Medicaid Services (CMS) suspended implementation of the Hospice Special Focus Program, a federally required initiative designed to identify and increase scrutiny of poorly performing hospices. The program would have driven more frequent inspections and stronger federal enforcement.
CDPH licenses and oversees hospice providers and investigates complaints, and DHCS audits Medi-Cal billing. However, the federal government administers Medicare, which accounts for the vast majority of hospice spending, and they reimburse, monitor, and investigate federal Medicare payments. The state is not involved in Medicare billing or payment processing.
California welcomes continued partnership with CMS as the federal government advances its own hospice oversight efforts, and will continue to share information and coordinate where appropriate to support shared program integrity goals. California’s work to prevent and stop fraud and hold fraudsters accountable is ongoing, and further details regarding these ongoing investigations will remain confidential to protect the integrity of this critical law enforcement work.
See how California is fighting fraud in state programs at stopfraud.ca.gov, and view B-roll of hospice compliance reviews. For more information about the decisive actions California has taken in hospice fraud enforcement, please see the Governor’s March and January news releases.
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Office of Communications
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DHCSPress@dhcs.ca.gov
SACRAMENTO — The California Department of Health Care Services (DHCS) today released the impact report on the first year of California’s Justice-Involved Reentry Initiative. This first-in-the-nation program provides targeted Medi-Cal services to incarcerated individuals up to 90 days before release, closing critical gaps in care and supporting safer, more stable returns to communities.
“California is leading the way in implementing safer, more effective reentry strategies,” said DHCS Director Michelle Baass. “By connecting people to community-based care before they leave incarceration, we’re improving individual health, strengthening families, and building safer communities. This initiative shows what’s possible when agencies work together to create real, lasting change.”
IMPACT TO DATE: The report highlights significant progress in the first year of the initiative, including strong collaboration among state agencies, counties, managed care plans, and community partners. The report also provides stories of individuals who have benefited from these services. In its first year, the initiative delivered more than 159,000 billable pre-release services and prescriptions and enrolled more than 24,000 incarcerated individuals in Medi-Cal prior to release.
“Before this initiative, without consistent communication, medical and corrections teams, despite being in the same facility, weren’t always aligned,” said Yuba County Project Manager Stephanie Lucio. “This effort has truly brought everyone to the table. Collaborating, sharing expertise, and building a solid reentry plan together has been invaluable.”
October 2025 marked one year since the initiative launched, a milestone for this cross-agency effort involving DHCS, the California Department of Corrections and Rehabilitation (CDCR) and California Correctional Health Care Services (CCHCS), county agencies (including county behavioral health, public health, probation, social services, and sheriff’s offices), Medi-Cal managed care plans, and community-based organizations. Since October 2024, all 31 state prison facilities and 34 county jails and youth correctional facilities across 14 counties have launched pre-release services. Nearly two dozen additional facilities are preparing to begin offering services to their populations in the next few months. All correctional facilities statewide are required to go live before October 1, 2026.
WHY THIS IS IMPORTANT: People leaving incarceration often face untreated health conditions and lack access to care, increasing risks of overdose, hospitalization, and recidivism. By starting Medi-Cal before release and coordinating connections to care in the community, California is reducing these risks and improving health equity. The Justice-Involved Reentry Initiative includes:
“We initiate reentry planning and Medi-Cal coverage well before a patient is due to be released, ensuring a warm handoff to community services,” said Dawn Freeman, the CCHCS Chief Nurse Executive overseeing the Justice-Involved Reentry Initiative. “It’s provided enormous reassurance and a greater sense of stability among this population, a critical component for health care and substance use treatment. Individuals expressed they feel better prepared knowing they have available resources, someone to connect with, and are no longer alone.”
This focus on coordinated, person centered care was highlighted in a recent New York Times article, which examined how California is implementing systemic changes to support individuals returning to their communities. For more information, see the Justice-Involved Reentry Initiative webpage.
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SACRAMENTO — Continuing California’s work to expand and modernize its behavioral health system, the California Department of Health Care Services (DHCS), Homeboy Industries, and community partners today broke ground on Home of the Angels, a new campus in Los Angeles supported by California’s voter-approved Behavioral Health Infrastructure Bond Act and DHCS’ Behavioral Health Continuum Infrastructure Program (BHCIP).
The project was awarded nearly $25 million in Bond BHCIP Round 1: Launch Ready funding, significantly expanding residential, outpatient, and peer-based support for individuals seeking substance use disorder treatment, particularly those who are formerly incarcerated, returning from the justice system, and part of the Homeboy Industries community.
When completed, the Home of the Angels campus will include:
The campus brings together residential treatment, peer respite, and outpatient services in one integrated setting, allowing participants to move seamlessly through each level of care as their needs evolve. The project also introduces licensed residential treatment on a Homeboy Industries campus for the first time—an important innovation that strengthens continuity of care, reduces reliance on outside referrals, and expands the organization’s comprehensive and compassionate reentry‑focused support system.
“Home of the Angels reflects the community-rooted solutions that the Newsom Administration is advancing, bringing treatment and recovery services under one roof and closer to the people who need them,” said DHCS Director Michelle Baass. “This investment expands access to care for Californians returning home from the justice system, supporting dignity, stability, and long-term recovery.”
WHY THIS MATTERS: Founded in Los Angeles, Homeboy Industries is a nationally recognized nonprofit organization supporting formerly incarcerated and formerly gang-involved individuals. Its trauma-informed, culturally responsive services include behavioral health supports, substance use disorder treatment, case management, and reentry-focused wraparound services rooted in healing and community connection.
Home of the Angels supports DHCS’ broader reentry initiative efforts, including the Justice-Involved Reentry Initiative, by:
“Healing happens when people are received with tenderness and held in community,” said Father Greg Boyle, Founder of Homeboy Industries. “Home of the Angels reflects what we have always believed at Homeboy Industries: that people heal when they are seen, cherished, and given a place to belong. By creating spaces rooted in love and dignity, we make room for restoration, hope, and new beginnings.”
BIG PICTURE: Bond BHCIP is a statewide initiative administered by DHCS that helps communities build, acquire, and expand treatment facilities, filling in longstanding gaps in crisis, residential, and outpatient behavioral health care facilities. Proposition 1 has funded 177 projects across 333 facilities, supporting 6,919 new residential and inpatient beds and 27,561 outpatient treatment slots, surpassing statewide goals just two years after passage. Since 2021, BHCIP has awarded $5.8 billion to strengthen crisis, residential, and outpatient care across the state.
Backed by significant statewide investments, new policies, and strong community partnerships, California is building a comprehensive and equitable continuum of behavioral health care that ensures people can access prevention, crisis support, treatment, and long term recovery services when and where they need them.
BIGGER PICTURE: California’s investment in Home of the Angels is part of the broader transformation underway through Proposition 1 and Governor Gavin Newsom’s Mental Health for All strategy. Earlier this month, the Governor announced the redevelopment of six vacant state owned buildings into the new Los Angeles County Care Community, supported by a $65 million Proposition 1 investment to create 162 new housing and treatment beds. This project, alongside BHCIP funded efforts like Home of the Angels, reflects the Administration’s comprehensive work to expand access to behavioral health care, increase treatment capacity, and help Californians experiencing serious mental illness, substance use disorders, or homelessness get the care and stability they need.
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Office of Communications
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DHCSPress@dhcs.ca.gov
Proposition 1 Paves the Way for Inner-Tribal Wellness Village to Expand Substance Use Disorder and Mental Health Treatment Services in San Diego County
SACRAMENTO — Delivering on Governor Gavin Newsom’s commitment to expand and modernize California’s behavioral health system, the California Department of Health Care Services (DHCS) joined Inner-Tribal Treatment and community partners on March 20 to break ground on the new Inner-Tribal Wellness Village in Pauma Valley. Supported by California’s voter-approved Behavioral Health Infrastructure Bond Act and the state’s Behavioral Health Continuum Infrastructure Program (BHCIP), the project includes nearly $20 million in Bond BHCIP Round 1: Launch Ready funding to significantly expand regional substance use disorder (SUD) and mental health treatment capacity. It is one of hundreds of Proposition 1 investments strengthening California’s continuum of community-based behavioral health care.
“California’s investment reflects a generational commitment to equity and healing,” said DHCS Director Michelle Baass. “The Inner-Tribal Wellness Village will provide spaces where individuals can find safety, dignity, and connection, grounded in culture and built around the needs of the people it serves.”
The campus will serve Tribal communities throughout San Diego County and surrounding regions who need behavioral health treatment and support. When completed, the Inner-Tribal Wellness Village will include a 60‑bed adult residential SUD treatment facility and a community mental health clinic with 120 outpatient slots, serving an estimated 500 individuals annually.
WHY THIS MATTERS: Since 2021, Inner-Tribal Treatment has provided culturally affirming services to 18 federally recognized Tribes in San Diego County and 12 Tribes in Riverside and San Bernardino counties. The new campus will expand that work by blending traditional healing practices with evidence-based clinical treatment, creating a holistic environment for care and recovery. Campus features will include spaces for talking circles, smudging, traditional teachings, and cultural ceremonies as well as clinical modalities, including cognitive behavioral therapy and other proven treatments that help people build skills for long-term wellness.
“This initiative represents a vital step forward in enhancing mental health, substance use disorder, and wellness services for our Tribal communities, who have historically faced significant disparities in access to care,” said Robert Aguilar, Founder and CEO of Inner-Tribal Treatment. “The Inner-Tribal Wellness Village will serve as a crucial hub for healing in a stigma-free environment, empowering individuals to take charge of their health and well-being in a culturally and spiritually affirming space.”
The Inner‑Tribal Wellness Village reflects a sustained investment that expands regional treatment capacity and moves California closer to its goal of a stronger, more equitable, and more accountable behavioral health system.
BIGGER PICTURE: Proposition 1, approved by California voters in March 2024, authorized up to $4.4 billion in bond funding for DHCS to expand behavioral health treatment infrastructure statewide. The initiative is creating thousands of new residential beds and outpatient treatment slots, prioritizing high‑need communities, including Tribal and rural regions. Under Proposition 1:
California is building a comprehensive continuum of behavioral health care, offering a full range of supports, from prevention and early intervention to treatment, crisis response, and long-term recovery. This approach is designed to ensure that every Californian, especially those who have historically faced the greatest barriers to care, can access high-quality mental health and SUD treatment when and where they need it.
Backed by significant investments, new policies, and strong partnerships, California is expanding treatment services and supportive housing while strengthening and diversifying the workforce. By prioritizing prevention, early support, and services tailored to individual needs, California is helping people get the right care at the right time, leading to better health outcomes and stronger communities statewide.
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Office of Communications
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DHCSPress@dhcs.ca.gov
SACRAMENTO — The Department of Health Care Services (DHCS) is coordinating a statewide Smile, California bilingual outreach campaign to help children and families understand the importance of early and regular dental care and to encourage the use of free Medi-Cal Dental preventive services. The campaign includes easy-to-use English and Spanish-language materials that explain what families can expect during dental visits and how to access care under Medi-Cal. It aims to reduce barriers to care by helping children feel prepared and parents feel confident about scheduling preventive dental visits.
“Dental problems don’t just cause pain—they interrupt learning, impact confidence, and widen achievement gaps,” said Dana Durham, Chief of DHCS’ Medi-Cal Dental Services Division. “The good news is that most of these issues are preventable, and Medi-Cal covers regular dental care for children at no cost to families.”
Throughout National Children’s Dental Health Month, Smile, California is encouraging parents, schools, and community partners to help children build healthy habits, including brushing twice a day, flossing daily, eating nutritious foods, and visiting the dentist regularly.
To support families, Smile, California released a new digital storybook, Jasmín Goes to the Dentist, in English and Spanish. It walks children step-by-step through a regular check-up. From the bright light above the chair to the tools hygienists use to clean teeth, the story helps normalize the experience, showing children that dental visits can be comfortable, friendly, and even fun.
The booklet also includes a special section for parents that encourages talking openly about dental care at home and reminds families that Medi-Cal covers preventive and restorative services for the whole family at no cost.
WHY THIS MATTERS: Dental problems are one of the most common, yet preventable, health issues affecting children in California. When children receive preventive care early and regularly, families can avoid unnecessary dental pain, reduce missed school days, and decrease the need for emergency treatment later in life. The new bilingual campaign supports families in navigating dental care and understanding covered benefits through Medi-Cal Dental.
Recent data show that more than 350,000 children and teens missed at least one school day because of dental issues, demonstrating the impact untreated dental problems can have on student well-being and their ability to learn, adding up to more than 869,000 lost school days and a cost of roughly $60 million to school districts.
ABOUT MEDI-CAL DENTAL: All children and teens enrolled in Medi-Cal qualify for two free dental check-ups each year, along with cleanings, fluoride treatments, sealants, and other preventive services. Adults age 21 and older can receive one free dental check-up each year, in addition to other covered services. Parents can find a Medi-Cal dentist and learn more at SmileCalifornia.org.
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Office of Communications
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SACRAMENTO — The California Department of Health Care Services (DHCS) today announced the release of the Implementation Plan for New Federal Eligibility and Enrollment Changes Under H.R. 1, outlining the state’s approach to implementing new federal requirements under H.R. 1. These changes, which start as early as October 2026, are expected to impact millions of Californians statewide.
“California is committed to implementing these federally required changes in a way that protects coverage and supports our members,” said DHCS Director Michelle Baass. “Our goal is to make this transition as smooth as possible by providing clear information, reducing administrative burdens, and working closely with members, counties, health plans, and community partners.”
DHCS is working to minimize disruption and maintain continuity of coverage for Medi-Cal members. The plan provides details on upcoming changes, guiding principles for implementation, and resources for members and stakeholders to prepare for transitions. About 2 million Medi-Cal members, primarily within the new adult expansion group, are at risk of losing health coverage due to these federal changes.
Key principles of the plan include:
DHCS will host an All-Comer Webinar on February 5 to review the plan and answer questions. Learn more and read the plan.
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Office of Communications
(916) 440-7660
DHCSPress@dhcs.ca.gov
New data show notable growth in Enhanced Care Management and Community Supports
SACRAMENTO — The Department of Health Care Services (DHCS) today released new data showing continued growth and impact from Enhanced Care Management (ECM) and Community Supports, key components of California’s Medi-Cal transformation under the California Advancing and Innovating Medi-Cal (CalAIM) initiative.
“These services help Medi-Cal members stay healthier and avoid other, costlier care, such as emergency department visits and hospital stays,” said DHCS Director Michelle Baass. “We appreciate the hard work and commitment of Medi-Cal managed care plan providers and partners. Together, we are building a health care delivery system that supports whole-person care for Medi-Cal members.”
The latest quarterly report includes trends since January 2022 and new data from April through June 2025, covering state, county, and managed care plan-level information on members served, service use, and provider networks.
ECM REACHES MORE CALIFORNIANS: ECM helps people with complex health and social needs, including homelessness, serious mental illness, or frequent hospital visits, coordinate the care they need, wherever they are. Since its launch in January 2022, ECM has connected more than 451,000 Medi-Cal members to high-touch, person-centered care coordination through a Lead Care Manager who helps navigate physical, behavioral, and social services.
In the second quarter of 2025, ECM enrollment rose, particularly among children and youth. More than 47,000 children and youth received ECM, a 102 percent increase from the same period last year. Nearly 3,600 adults transitioning from incarceration and more than 16,000 children and youth experiencing homelessness also received ECM, increases of 83 percent and 164 percent compared to the same period last year, respectively. To meet this demand, provider networks expanded significantly, with providers serving these populations increasing by more than 80 percent year-over-year.
“Every expansion means more Californians have access to services that keep them stable, healthy, and supported,” said State Medicaid Director Tyler Sadwith. “We’re focused on making these programs even more accessible and responsive to the communities we serve.”
COMMUNITY SUPPORTS GROWTH: Community Supports provide cost-effective, community-based alternatives to traditional medical care, addressing housing, nutrition, and other social drivers of health. Since launching in January 2022, these services have become a cornerstone of whole-person care in Medi-Cal.
As of June 2025, more than 520,000 Medi-Cal members have accessed Community Supports, with more than 1.3 million services delivered statewide. Access continues to expand, as nearly all Medi-Cal members now have access to at least 10 Community Supports, and most (94 percent) can choose from the full suite of services. Medically tailored meals and housing-related services remain among the most utilized.
WHY THIS IS IMPORTANT: The growth of ECM and Community Supports reflects California’s commitment. These services are critical tools in addressing challenges, such as homelessness, behavioral health access, and support for families and youth with complex needs.
As a part of this commitment to improving health outcomes, California expanded the Justice-Involved Reentry Initiative, which requires managed care plans to provide care coordination and medical and behavioral health services up to 90 days before release, ensuring continuity of care during reentry to communities. This initiative, which is supporting members with pre-release services and making connections for ongoing care through post-release ECM, went live in October 2024 with three counties, expanded to state prisons in February 2025, and is now active in 13 counties. All counties statewide are required to offer these services by October 2026.
INVESTING IN CAPACITY: To support the expansion of ECM and Community Supports, DHCS has awarded more than $1.66 billion through its Providing Access and Transforming Health (PATH) initiatives, including Capacity and Infrastructure Transition, Expansion, and Development (CITED), Collaborative Planning and Implementation, Justice-Involved Capacity Building program, and Technical Assistance Marketplace. These funds help community-based organizations, clinics, and local agencies grow their capacity by hiring staff, upgrading systems, and improving care coordination. The fourth and final round of PATH CITED grant awardees was announced in November 2025.
WHAT’S NEXT: DHCS will continue listening to Medi-Cal members who use ECM and Community Supports. Feedback gathered through surveys, focus groups, and other outreach will guide improvements to make these services easier to access, more effective, and more responsive to California’s diverse communities.
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Office of Communications
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DHCSPress@dhcs.ca.gov