Medi-Cal managed care plans: financial incentives.
The law as proposed in AB 990 is designed to promote better health practices among low-income individuals enrolled in Medi-Cal, consequently leading to a healthier population and potential savings within the healthcare system. The annual evaluations that plans must conduct will also allow for continuous assessment of the effectiveness of the incentive programs, adding a level of accountability and adaptability to the initiative. However, these provisions will only take effect if federal approvals are met, and they are set to be repealed by January 1, 2026, unless renewed or extended.
Assembly Bill 990 seeks to enhance the Medi-Cal managed care program by mandating that these plans offer financial incentives to their enrollees who participate in preventive health and wellness activities. The overarching intent of the bill is to improve the health of Medi-Cal beneficiaries through increased wellness, ultimately aiming to reduce healthcare costs by minimizing the necessity for medical interventions. This will be achieved by providing a minimum incentive of $100 annually to participating enrollees, effective from contracts initiated or revised after January 1, 2021.
The sentiment around AB 990 appears to be generally positive among supporters who argue that it encourages proactive health management among Medi-Cal beneficiaries. However, there is also a sense of caution regarding the implementation phase, particularly about the dependency on federal approval and the timeline for effectiveness. Critics, if any, seem to be concerned about how the financial incentives will be managed and if they will genuinely benefit the intended population.
One notable point of contention relates to the bill's dependency on federal approval for implementation. While proponents highlight the potential benefits of incentivizing preventive health practices, critics may question the feasibility of executing this plan within the constraints of existing federal Medicaid rules. Furthermore, discussions may arise concerning the allocation and distribution of funds intended for these financial incentives, as well as concerns about whether they will effectively motivate behavior changes among enrollees.