Managed Care Organization Tax

On Nov. 5, California voters overwhelmingly approved Proposition (Prop) 35, making an existing tax on managed care organizations (MCO) permanent under state law — and directing most of the revenues toward expanding access to care for Medi-Cal patients through improved provider reimbursement. Now, work by the state, hospitals, and others to determine how these funds should be distributed begins. 

OHCA Board Could Approve Creation of Statewide Hospital Sector in Early 2025

What’s happening: The Office of Health Care Affordability (OHCA) board met earlier this week to discuss options for defining hospitals as a sector for spending target purposes, as well as receive an update on progress toward adopting a behavioral health investment benchmark. 

What else to know: CHA wrote to the board and provided public comment, pressing that the adoption of a hospital sector definition is premature and misguided, while stating the importance of including the full continuum of clinically appropriate services in OHCA’s behavioral health investment benchmark. 

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Liver Transplant Saves Infant’s Life

When Leandro and Sara’s infant daughter Mia started exhibiting a yellow pigment in her eyes, tests and scans at a local hospital led to a diagnosis of biliary atresia. After being referred to Children’s Hospital Los Angeles, Mia received a liver transplant and is now back to achieving infant milestones like playing with toys and using her big voice.

Read more about Mia’s liver transplant

New Disaster Preparedness Site Streamlines Crisis Response Resources

What’s happening: CHA has incorporated its disaster preparedness website, www.calhospitalprepare.org, into the general CHA website, giving members one-stop access to all association info. 

What else to know: The new web page retains the critical disaster recovery and response information formerly housed on the previous site, combining that essential content with CHA’s broader resources.  

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CHA Summary Covers Proposed Changes to Medicare Advantage Part D Plans

What’s happening: CHA has issued a members-only summary of the proposed changes to Medicare Advantage (MA) and Part D programs for contract year 2026.  

What else to know: The summary, prepared by Health Policy Alternatives, Inc., also includes proposals to codify existing sub-regulatory guidance in the MA Part C and Part D programs.  

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CHA Issues Summary of New Payment Model on Kidney Transplant Access

What’s happening: A summary of the finalized Increasing Organ Transplant Access Model is available for CHA members.  

What else to know: The model will test whether performance-based incentive payments paid to or owed by participating kidney transplant hospitals increase access to kidney transplants for patients with end-stage renal disease.  

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CHA DataSuite Analysis Provides Comparative Review of CMS ‘Care Compare’ Quality Data for Third Quarter 2024

What’s happening: CHA DataSuite has issued a hospital-specific analysis on quality program measure trends for the third quarter of 2024.  

What else to know: The analysis provides hospitals a comparative review of the quality data collected over time by the Centers for Medicare & Medicaid Services (CMS) and published on Care Compare.   

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A Powerful Presence in 2024 … and Beyond

As 2024 comes to a close, it’s a good time to pause to reflect on the work we’ve done together to help improve the lives of all Californians.  

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DHCS Releases Updated List of Medi-Cal Managed Care Plan Liaisons for Long-Term Care Providers

What’s happening: The Department of Health Care Services (DHCS) requires Medi-Cal managed care plans (MCPs) to identify a liaison to serve as a single point of contact for long-term care providers. These liaisons are listed in an updated DHCS document. 

What else to know: The long-term services and supports (LTSS) liaison provides support to LTC providers, including skilled-nursing facilities (SNFs) with addressing claims and payment inquiries and care transitions to support Medi-Cal members’ needs. 

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DMHC Fines Blue Cross of California $3.5 Million, Second Grievance-Related Fine in Recent History

What’s happening: On. Dec. 16, the California Department of Managed Health Care (DMHC) announced that it fined Blue Cross of California (Anthem Blue Cross) $3.5 million for mishandling member grievances and not responding on time.  

What else to know: Anthem Blue Cross has paid the $3.5 million fine and acknowledged its failure to follow law, which states that “health plans must resolve a standard grievance within 30 days and send a written resolution to the member.”  

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