September 30, 2024
Ball: In prior conversations, you said CalOptima Health prioritizes partnership. Is that the basis for your “Better. Together.” motto?
Hunn: Yes! CalOptima Health relies on partnership with the provider community. We are fortunate to have more than 10,000 contracts in place with doctors, hospitals and the whole spectrum of other providers needed for comprehensive coverage. It has been an ongoing challenge to support our providers based on historically low Medi-Cal reimbursement rates, so we recently made a bold move to pay significantly more.
Ball: How big is that provider rate increase?
Hunn: In June 2024, the CalOptima Health Board of Directors approved an investment of $526.2 million to increase rates paid to health networks, hospitals, physicians, community clinics, behavioral health providers and ancillary services providers. It is the largest provider rate increase of its kind in CalOptima Health’s nearly 30-year history. Our goal is to support timely access to critical health care services for members and promote longer-term financial stability of our managed care network. The 7.5% increase is in place through December 2026. Leaders in the provider community have expressed appreciation for the recognition and validation of their important role in supporting the health care safety net in Orange County.
Ball: Does the reported shortage of health care workers affect CalOptima Health?
Hunn: We are addressing that shortage at its roots — with students pursuing careers in health care. This spring, we awarded $25 million in provider workforce education grants to seven institutions in Orange County. The grants seek to secure the future delivery system and bridge predicted gaps in the health care workforce that serves the Medi-Cal population. We held wonderful events to celebrate with students at UCI, CSUF, Concordia University Irvine and Chapman University to name a few. It was uplifting to see the students’ enthusiasm as they work toward becoming trained health care professionals committed to serving CalOptima Health members.
Ball: OCBC has many provider organizations as investors, so I’m certain they welcome CalOptima Health’s innovative support. Thank you, Michael.
