“We are pleased that, working together with California’s Department of Health Care Services, we have been able to reach this new ground-breaking agreement covering our state health plans,” said Gellert.The agreement has the following key components:
- Resolves and releases the state from outstanding Health Net litigation related to Medi-Cal rate disputes for rate years prior to 2011/2012.
- Five-year extensions on each of Health Net’s four existing Medi-Cal contracts covering seven counties. These contracts are now extended through 2018 to 2022, depending on the individual contract.
- Effective January 1, 2013, a new process consistent with DHCS’s existing actuarial targets that Health Net believes will help promote greater financial stability and predictability for both parties.