CMA President’s Letter: First phase of historic Medi-Cal rate increases takes effect Jan. 1

December 05, 2023

As we approach the new year, I am pleased to share a momentous update on historic legislation that will ensure that millions of Californians have greater access to affordable, high-quality, life-saving health care.

Starting January 1, 2024, the largest Medi-Cal provider rate increase in California history will begin to go into effect. This is a tangible result of California Medical Association (CMA) advocacy that made  these long-overdue investments in our Medi-Cal system a reality.

The historic rate increases are made possible by the passage of a Managed Care Organization (MCO) Tax that will draw down federal matching dollars, passed as part of the 2023-24 budget deal that was negotiated by the CMA-led Coalition to Protect Access to Care.

With the January 1 implementation date approaching, the California Department of Health Care Services recently published the new Medi-Cal Targeted Rate Increase Fee Schedule for 2024. (You can read more about the fee schedule here.)

Over the past several years, CMA has proudly supported California’s massive expansions in Medi-Cal eligibility and benefits, but the missing piece of the puzzle has always been funding to support access. With California ranking near the bottom of all states in Medicaid provider reimbursements, moving the needle on access for Medi-Cal patients has been frustratingly slow.

But the historic rate increases over the next two years should increase provider participation in the Medi-Cal program and will make great strides towards improving equity in our health care system.

I am so proud of the work CMA has done to make this possible. Thank you to the physicians of California for your dedication to the medical profession and your unwavering commitment to the well-being of our communities.

In good health,

Tanya W. Spirtos, M.D.
CMA President

Also see: DHCS to host webinar on new Medi-Cal fee increases for 2024


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