Medi-Cal

About Medi-Cal

More than 15 million Californians rely on Medi-Cal, the state’s health care coverage safety net, for health insurance. Two-thirds of those on Medi-Cal are people of color and often live in communities with a lack of adequate health care providers. Without significant investments to support providers that deliver health care to California’s most vulnerable, millions living in rural and underserved areas are in jeopardy.

Medi-Cal is California’s version of the federal program known as Medicaid. To learn more about CHA’s work to protect Medicaid, visit our federal resource page.

CMS Issues Updated Guidance on Medicaid State-Directed Payments

What’s happening: On Feb. 2, the Centers for Medicare & Medicaid Services (CMS) issued a letter providing guidance on Section 71116 of the One Big Beautiful Bill Act, which eventually limits the total managed care payment rate received by hospitals to Medicare levels after a temporary grandfathering period. This letter supersedes the guidance CMS released on Sept. 9, 2025. 

2026-27 State Budget to be Released Tomorrow

What’s happening: Governor Gavin Newsom will release his proposed budget for 2026-27 tomorrow, kicking off the state budget process and legislative budget hearings that will continue until the budget is finalized this summer.  

Key Messages: California’s Health Care System Is on Life Support

The risk of losing access to critical health care services for Californians has never been greater.   In the past three years alone, two hospitals in California have been forced to close. Another 22 have had to shutter maternity units just to stay afloat, leaving 12 counties without maternity care. Today, dozens more are facing similar...