In major reversal, California awards additional Medicaid contracts

California is awarding more payers contracts to manage its Medicaid program, reversing course on contract awards that could have forced two million Medi-Cal members to switch insurance. 

In a Dec. 30 press release, California's Department of Health Care Services said it would award Blue Shield of California Promise Health Plan and Community Health Group Partnership Plan managed care contracts in San Diego County. The two payers had previously been denied contracts in the bidding process.

Centene's Health Net and Blue Cross of California Health Plan were also awarded contracts in additional counties. 

In a Jan. 3 news release, Health Net said it would end legal action related to the contract awards. 

California issued the initial contract decisions in August 2022, as part of its broader efforts to improve Medi-Cal, which covers over 12 million enrollees. Payers who lost out on contracts disputed the state's decision, which the state's Department of Health Care Services estimated would cause up to 2.3 million Medi-Cal beneficiaries to switch insurance providers. 

In San Diego County, where Blue Shield of California Promise Health Plan and Community Health Group Partnership Plan won back contracts, 366,000 fewer residents will need to switch Medi-Cal plans, The San Diego Union-Tribune reported Jan. 3. 

Read more about the contract awards here.

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