CHA News

OHCA Board Approves Creation of Hospital Sector, Paves Way for Lower Spending Targets in 2026

What’s happening: At the Jan. 28 Office of Health Care Affordability (OHCA) board meeting, the board voted 6-0 to create a statewide hospital sector and focused on options for imposing stricter spending targets on a limited set of “high-cost” hospitals. 

What else to know: In February, OHCA staff will propose methodologies for determining which hospitals are high cost and what the spending target values will be. To set a lower sector spending target for at least some hospitals in 2026, OHCA’s board must take formal action by June 1, 2025. 

Health Facilities Must Work With College Nursing Programs on Clinical Placements

What’s happening: Effective Jan. 1, Assembly Bill (AB) 1577 (2024) added Section 12775 to the Health and Safety Code, requiring health facilities and clinics to meet with a community college or California State University that has an approved school of nursing upon the college’s request and work in good faith to meet the nursing program’s clinical placement needs.  

What else to know: Beginning in 2026, if a health facility or clinic lacks the capability or capacity to meet the college’s needs, the Department of Health Care Access and Information (HCAI) will require written justification within 30 days of the meeting, subject to a $1,000 fine for failure to provide the justification. 

CHA Comments on Medicare Advantage Proposals for 2026

What’s happening: CHA submitted comments in response to the Centers for Medicare & Medicaid Services’ (CMS) proposed policy and technical changes to Medicare Advantage (MA) and Part D programs for contract year 2026.   

What else to know: Finalization of the proposed rule is expected in April — in time for MA plans to bid to CMS and offer MA products for plan year 2026. The rule, once finalized, will take effect Jan. 1, 2026.  

CHA Publishes Resources to Support Hospitals’ Congressional Advocacy Efforts

What’s happening: CHA’s new federal resources can assist hospitals in their messaging to lawmakers on health policy options circulating in Washington, D.C.     What else to know: The resources cover financial instability, rural hospital care, site-neutral policies, disproportionate share hospital payment cuts, and the 340B drug pricing program. 

New Resource Available on Assisted Living Waiver, CalAIM Community Supports

What’s happening: The California Health Care Foundation has issued an Explainer document that describes and compares two key Medi-Cal programs: the Assisted Living Waiver (ALW) and Community Supports (a component of California’s Medi-Cal reform initiative, California Advancing and Innovating Medi-Cal (CalAIM)).    What else to know: The document provides an overview of the ALW and the […]

Judge Delays Jan. 27 Hearing on Anthem’s Motions in CHA Lawsuit

What’s happening: A Los Angeles Superior Court judge has delayed the Jan. 27 court hearing on two motions by Anthem Blue Cross — to dismiss CHA’s lawsuit and strike requested remedies — to Feb. 14. In the lawsuit, CHA claims Anthem failed to provide timely post-hospital care for its members.  

What else to know: CHA has filed opposition to each of the motions, disputing both Anthem’s legal arguments and its characterization of the facts. The judge’s decision could come as soon as the hearing, but no later than May 14. The judge gave no reason for delaying the hearing. 

Judge to Hear Anthem’s Motions in CHA Lawsuit on Jan. 27

What’s happening: A Los Angeles Superior Court judge will hear two motions by Anthem Blue Cross on Jan. 27 to dismiss CHA’s lawsuit and strike requested remedies. In the lawsuit, CHA claims Anthem failed to provide timely post-hospital care for its members.  

What else to know: CHA has filed opposition to each of the motions, disputing both Anthem’s legal arguments and its characterization of the facts. The judge’s decision could come as soon as the hearing, but no later than April 28.  

Authors
  • Ben Johnson
    Group Vice President, Financial Policy
  • Savannah Tapia
    Policy Associate