DHCS Releases RFP for Medi-Cal Managed Care Plan Contracts

On Wednesday, the California Department of Health Care Services (DHCS) released a Request for Proposal (RFP) for its commercial Medi-Cal managed care plan (MCP) contracts. DHCS is seeking MCPs committed and able to advance equity, quality, access, accountability, and transparency to reduce health disparities and improve health outcomes for Californians.

While the release RFP is only for commercial Medi-Cal MCPs, the updated contract language will be executed with all Medi-Cal MCPs, including County Organized Health Systems (COHS), Local Initiatives (LIs), and the new Single Plan Model. The updated MCP contract, released with the RFP, additionally serves as the minimum definition of requirements.

According to DHCS, health plans will be expected to deliver person-centered care that addresses the physical and mental health needs of enrollees, as well as unmet social needs that impact an individual’s health outcomes, such as food insecurity and housing. The RFP will be California’s first statewide procurement, and all managed care plans must commit to a range of new requirements that advance health equity and improve population health. Priorities include the delivery of high-quality, culturally competent care and access to providers and coordination of care across settings and at all levels. All managed care plans will also be expected to engage and coordinate with local community partners, invest resources into communities, and make public their performance and health equity activities.

Proposals from managed care plans are due on April 11, 2022. DHCS expects to award contracts to selected plans in August 2022, and plans will have more than a year to prepare their Medi-Cal delivery systems to meet new contract requirements that take effect in January 2024.

DHCS will host a Medi-Cal MCP Voluntary Pre-Proposal Web Conference on February 24 from 1:00 pm to 2:30 pm. Webinar registration is available here.

Additional information on the state’s RFP is available here. An issue brief on procurement is available here. The full RFP is available here.