CHA News

DHCS Issues Hospital Fee Program CY 2021 Passthrough Invoices

For CFOs, finance staff

This post has been archived and contains information that may be out of date.

Last week, the Department of Health Care Services (DHCS) issued invoices to hospitals associated with the managed care calendar year (CY) 2021 passthrough cycle. Since the CY 2021 time period crosses over two state fiscal years, the DHCS team labeled these invoices as “MC2 PT and MC3 PT.”

On the CHA estimated schedules released at the start of the Hospital Fee Program 6 (2019-21), this cycle is noted as “MC Passthrough 2” and originally scheduled to be invoiced in August 2022. 

As previously shared in CHA News, DHCS agreed to expedite the Medi-Cal managed care passthrough payment cycle for hospitals due to the ongoing COVID-19 pandemic. Due to the enhanced federal matching rate on Medicaid payments authorized by Congress to continue throughout the public health emergency, the invoiced fees are coming in approximately 20% lower than modeled. This is not a mistake by DHCS.  

What’s next? 

  • Hospitals’ fees are due to DHCS on Dec. 20. 
  • Managed care payments will be processed in January 2022 for the plans.  
  • CHA will distribute payment schedules to hospitals and plans the first week of February. 
  • Plan payments to hospitals are expected by the end of March 2022.