CalOptima Health's board approved a $526.2 million pay bump for providers who are part of the insurer's Medicaid managed care network in Orange County, California, the county-run health insurer announced Monday.
The funds will be distributed from July 2024 to December 2026 to hospitals, physicians, community clinics, behavioral health practitioners and other safety-net providers in Southern California, CalOptima said in a news release. The reimbursement increase is aimed at shoring up the financial stability of the insurer's manged care network, the insurer said.
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CalOptima says the rate increases are needed amid California's multibillion-dollar state budget deficit, and uncertainty surrounding the state's Medicaid funding.
The insurer also provided short-term, temporary payments during the COVID-19 public health emergency.
CalOptima, which provides health insurance benefits to more than 928,000 low-income people, hopes bolstering Medicaid reimbursement within its network will preserve access to care for low-income Southern California residents, CEO Michael Hunn said in the news release.
