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Beginning January 1, 2026, all Medi-Cal managed care plans are required to provide Transitional Rent to eligible members of the behavioral health population of focus. Transitional Rent is the newest addition to the suite of Community Supports, designed to help Medi-Cal members experiencing or at risk of homelessness. This benefit provides up to six months of rental assistance in interim or permanent housing settings for members who are homeless or at risk, have certain clinical risk factors, and have recently undergone a critical life transition, such as exiting an institutional or carceral setting, foster care, or other high-risk situations. Transitional Rent acts as a bridge to permanent housing, helping members connect to health care services and avoid returning to homelessness. This requirement is a cornerstone of California’s Behavioral Health Community-Based Organized Networks of Equitable Care and Treatment (BH-CONNECT) initiative, which aims to address social and health needs that impact mental wellness, reduce unnecessary emergency visits and institutional stays, and build a more equitable, person-centered behavioral health system. For additional guidance and resources, see the Community Supports Policy Guide Volume 2 (page 57).
Starting in 2026, California is expanding access to Medi-Medi Plans––integrated health plans for people who have both Medicare and Medi-Cal—to improve care coordination for individuals eligible for both Medicare and Medi-Cal. Currently, Medi-Medi Plans serve approximately 330,000 members in 12 counties: Fresno, Kings, Los Angeles, Madera, Orange, Riverside, Sacramento, San Bernardino, San Diego, San Mateo, Santa Clara, and Tulare. In 2026, nine new Medi-Medi Plans will launch, and three existing Medi-Medi Plans will expand, to serve 461,000 potential members in 29 additional counties: Alameda, Alpine, Amador, Calaveras, Contra Costa, El Dorado, Imperial, Inyo, Kern, Marin, Mariposa, Merced, Mono, Monterey, Napa, Placer, San Benito, San Francisco, San Joaquin, San Luis Obispo, Santa Barbara, Santa Cruz, Solano, Sonoma, Stanislaus, Tuolumne, Ventura, Yolo, and Yuba.
This expansion brings the total to 41 counties that offer Medi-Medi Plans, nearly quadrupling access to these plans. Californians in these counties who are eligible for both Medicare and Medi-Cal will have the option to enroll in a Medi-Medi Plan to receive additional support to help manage chronic conditions, disabilities, or long-term care needs. Medi-Medi Plans, also known as Dual Eligible Special Needs Plans (D-SNP), offer integrated benefits, streamlined services, and a single point of contact for members who qualify for both programs. These features help members navigate complex systems and access more person-centered care. Medi-Medi Plans include coordinated medical, behavioral health, and long-term services, along with Enhanced Care Management and support for social needs. Enrollment is voluntary and available to individuals who meet dual eligibility criteria. For more details, visit the Medicare Medi-Cal Plan List webpage, Joining a Medi-Medi Plan information sheet, and the Medi-Medi Plan Expansion Fact Sheet.
Starting January 1, 2026, Medi-Cal coverage eligibility will be limited based on assets (things that are owned). This applies to members who are age 65 or older, have a disability (physical, mental, or developmental), live in a nursing home, or are in a family that makes too much money to qualify under federal tax rules. This means members must share information about what they own when applying for or renewing Medi-Cal. The new asset limits are $130,000 for an individual, plus $65,000 for each additional household member (up to 10 members). For married couples with spousal impoverishment protections, additional allowances apply. Countable assets include cash, bank accounts, stocks, and secondary properties. Exempt assets include one primary residence, one vehicle, household goods, and certain retirement accounts. On or after January 1, 2026, new applicants must report assets in their application, and current members will report assets at their next renewal after January 1, 2026. In preparation for the reinstatement of asset limits, General Information Notice and FAQs were mailed to all affected Medi-Cal members in their preferred language. For more information and resources, visit DHCS Medi-Cal Changes.
Starting January 1, 2026, adults aged 19 and older without a qualifying immigration status who are not already enrolled in Medi-Cal are no longer eligible to apply for full-scope Medi-Cal coverage. Members already enrolled in full-scope Medi-Cal, regardless of immigration status, can stay enrolled. However, they must renew their coverage on time and meet eligibility rules, including income and California residency. If a member loses coverage, they will have a three-month grace period to re-enroll starting the day their coverage ends. After that, they will only be eligible for restricted-scope Medi-Cal, which covers emergency care, pregnancy-related services, and nursing home care. Full-scope Medi-Cal will still be available to children, pregnant individuals (coverage lasts through the pregnancy and for one year after the pregnancy ends), and foster youth and former foster youth who were in foster care on their 18th birthday, up to age 26. For details on who is affected, see Immigration Status and Medi-Cal Eligibility and DHCS Medi-Cal Changes.
DHCS remains committed to protecting the privacy and well-being of all Medi-Cal members. Recent reports and legal developments have raised serious concerns about how federal agencies use Medicaid data, including personal information for the more than 14 million Californians covered by Medi-Cal. We want to share what we know. On December 29, 2025, a federal court ruled that the Centers for Medicare & Medicaid Services (CMS) may share limited information with Immigration and Customs Enforcement (ICE) only for individuals who are not “lawfully residing” in the United States. However, some uncertainty remains as the federal government has not provided California with any information about how it plans to implement the court’s order. Read DHCS’ updated statement.
Senate Bill (SB) 582 (Stern, Chapter 546, Statutes of 2025) establishes revised licensing policies for health and care facilities under the jurisdiction of the California Department of Social Services (CDSS), California Department of Health Care Services (DHCS), and California Department of Public Health (CDPH) during a declared emergency or disaster. This new law takes effect, in part, on January 1, 2026, with additional provisions effective on January 1, 2028. The primary purpose of SB 582 is to help licensed facilities recover and reopen more quickly after destruction or damage from a disaster by allowing for a temporary suspension of their active licenses, thereby avoiding a lengthy and costly relicensing process. SB 582 outlines specific roles for CDSS, DHCS, and CDPH concerning various types of facilities.
DHCS is finalizing a Behavioral Health Information Notice (BHIN) to provide guidance to licensed alcohol and other drug (AOD) recovery or treatment facilities and certified AOD programs regarding the process for requesting inactive license or certification status following a declared emergency or disaster. DHCS released the draft BHIN on December 23, 2025, for stakeholder review and feedback to LCDQuestions@dhcs.ca.gov by January 9, 2026.
CDPH will issue an All Facilities Letter to skilled nursing facilities (SNF) to inform them that they must now seek and incorporate input from local and regional planning offices, including their medical health operational area coordinator, and provide copies of the plan to local and regional planning offices. Nurse surveyors will continue to review emergency response plans annually via the SNF re-licensure process. In addition, CDPH teams will monitor emergency response compliance with federal regulations through the federal recertification process. Nursing staff may review these items again while onsite for complaints or other onsite activities. Additionally, CDPH has implemented a LEAN Transformation project to address efficiency concerns during emergency response across various centers and offices, including, but not limited to, the Center for Health Care Quality, Center for Preparedness and Response, and others.
CDSS is in the process of implementing this legislation by developing new procedures, updating system programming, creating and revising forms, establishing licensing standards, and providing staff training. CDSS engages licensees, stakeholders, and partners to strengthen understanding of existing licensing requirements and support a streamlined implementation process.
Licensing standards and draft regulations are currently under development to ensure compliance with statutory deadlines. In addition, existing forms, dashboards, and reports may be enhanced to promote alignment and will be leveraged for outreach with external partners.
On December 29, the U.S. District Court in Maine issued a preliminary injunction blocking the Health Resources and Services Administration (HRSA) from implementing the 340B Rebate Model Pilot Program, which was scheduled to begin on January 1, 2026. This injunction applies to the implementation of the program in California and will remain in effect pending further legal action. As a result, DHCS will not implement the policy guidance, issued on December 11, 2025, regarding drugs included in the 340B Rebate Model Pilot Program until further notice. Pharmacy providers should continue submitting Medi-Cal Rx and medical claims, as applicable, in accordance with all existing Medi-Cal 340B billing policies. On December 30, DHCS communicated this update to providers through a Medi-Cal bulletin article and Medi-Cal Rx alert.
DHCS is hiring for its Accounting, Audits and Investigations, Financial Management Division, and other teams. For more information, please visit the CalCareers website.
DHCS posts upcoming public meetings on its 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.
On January 12, DHCS, in partnership with the University of California San Diego Division of Extended Studies, will launch the Advancing SUD Counselor Education and Development (ASCEND) Program. ASCEND is a free, self-paced, 80-hour online training for substance use disorder (SUD) counselors featuring instruction from experienced professionals. The program was developed with the University of California San Diego Division of Extended Studies and the Assembly Bill 2473 Stakeholder Advisory Group as part of DHCS’ ongoing efforts to strengthen the SUD workforce. The curriculum covers 12 core competencies required for counselor certification. For more information and to view a video about ASCEND, visit the DHCS YouTube channel. Registration is available on the University of California San Diego Division of Extended Studies website.
On January 14, from 10 a.m. to 1 p.m. PST, DHCS will host the PAHCA-SAC meeting (advance registration required for online participation) at 1700 K Street (first-floor conference room 17.1014), Sacramento. The committee is responsible for advising DHCS on developing and implementing components of PAHCA (Proposition 35).
On December 19, DHCS, in partnership with the California Health Care Foundation (CHCF) and Aurrera Health Group, published the complete Managed Care Plan (MCP)-Hub Partnerships Toolkit for Plans and CalAIM Providers released during the summer. The new modules highlight existing subcontracting requirements relevant to Hubs, considerations for MCPs and Hubs to operationalize voluntary contracting partnerships, and requirements for MCP oversight and monitoring of contracted Hubs. On January 16, from 1 to 2:30 p.m. PST, DHCS will host a public informational webinar to review the toolkit (advance registration required). Webinar attendees may submit questions in advance to MCQMD@dhcs.ca.gov with the subject line “MCP-Hubs Toolkit.”
On January 29, from 11 a.m. to 12 p.m. PST, DHCS will host a Coverage Ambassador webinar (advance registration required). Coverage Ambassadors are trusted messengers who help raise awareness about Medi-Cal benefits, enrollment opportunities, and new initiatives aimed at building a healthier California for all. Please visit the Coverage Ambassador website for more information and to subscribe to receive regular updates, newsletters, and webinar reminders.
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Office of Communications
(916) 440-7660
DHCSPress@dhcs.ca.gov
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.
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.
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.
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.
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.
DHCS expanded access to substance use disorder (SUD) treatment and lifesaving prevention and recovery services through targeted investments and statewide collaboration. Key highlights include:
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.
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.
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.
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.
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.
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:
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
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Office of Communications
(916) 440-7660
DHCSPress@dhcs.ca.gov