Memo

CMS Approves Managed Care Rates and Contracts Under Hospital Fee Program
Managed care plans will begin receiving rate increases from DHCS by yearend

CHA just received approval letters from the Centers for Medicare & Medicaid Services (CMS) for the managed care rates and contracts for the increased managed care payments under the hospital fee program. The approval letters cover the county-organized health system plans and the two-plan model programs. CMS approvals for the plans in geographic managed care counties are expected prior to yearend. The letters are available for CHA members only at www.calhospital.org/cms-approval-letters.

The plans will begin receiving their rate increases from the Department of Health Care Services (DHCS) by yearend. The law requires the plans to distribute the funds to hospitals within 30 days. CHA has been working with all the managed care plans throughout this approval process, and they are committed to the success of this program.

CHA provided the plans with a list of the amounts each hospital should receive. Once we know the payments have been made by DHCS to the plans, we will make the lists available to hospitals so hospitals can ensure proper payment is received from the appropriate plans.

Commands