Approve and authorize the Chair to sign agreement with the Kaiser Foundation Health Plan, that will commence on the Effective Date and unless terminated sooner will renew for successive one-year terms, for the transfer of public funds to provide support for the nonfederal share of risk-based payments to managed care health plans for Medi-Cal health care services. (No general fund impact) (Morales)

Approve and authorize the Chair to sign agreement with the Kaiser Foundation Health Plan, that will commence on the Effective Date and unless terminated sooner will renew for successive one-year terms, for the transfer of public funds to provide support for the nonfederal share of risk-based payments to managed care health plans for Medi-Cal health care services.

Each year, the Yolo County (County) Health and Human Services Agency (HHSA) seeks to secure federal financial support for services delivered to the Medi-Cal population that have not previously received federal matching funds. The mechanism for securing these funds involves a rate range intergovernmental transfer (IGT) process pursuant to sections 14164 and 14301.4 of the Welfare and Institutions Code through an agreement with the California Department of Health Care Services (DHCS).  The rate range IGT process requires that County transfer local funding to DHCS, who uses the funds to draw down additional federal matching funds.  DHCS then transfers the original County funds, along with the federal matching funds minus an administrative fee, to the appropriate local Medi-Cal Health Plan.

In 2022, DHCS and Kaiser established a partnership, informally called the "Medi-Cal Direct Contract" Bill. It allows Kaiser Permanente (KP) to contract with the Department of Health Care Services (DHCS) as an alternate health care service plan (AHCSP) in all geographic regions where KP has a commercial footprint. As a new managed care plan, Kaiser is licensed under and subject to the Knox-Keene Care Service Plan Act of 1975, to which Kaiser arranges and pays for the provisions of covered Medi-Cal health care services to eligible Medi-Cal members and participates in the Voluntary Range Rate Program Inter Governmental Transfer.

This agreement documents the IGT process with Kaiser Foundation Health Plan (Plan), one of County’s Medi-Cal Health Plan. The Plan is a health care service plan licensed under and subject to the Knox-Keene Care Service Plan Act of 1975 and is a party to a Medi-Cal managed care contract with the California DHCS pursuant to which Plan arranges and pays for the provisions of covered Medi-Cal health care services to eligible Medi-Cal members.

Should the Plan receive any IGT Medi-Cal Managed Care Rate Range Increases (IGT MMCRRIs) from DHCS where the nonfederal share is funded by County, the Plan shall make payments to County in the amount of the IGT MMCRRIs received from DHCS, minus a 2% administrative fee. The estimated amount of IGT MMCRRIs to be paid to County from Plan is $312,960 for the period of Effective Date and for successive one-year terms on the anniversary of Effective Date.  

County Counsel has approved this Agreement as to form.

Not required for revenue agreements.