Press release

LHPC Opposes AB 2724 – Sweetheart Medi-Cal Contract for Kaiser

SACRAMENTO, CA – On behalf of the Local Health Plans of California (LHPC), a group representing the 16 not-for-profit local health plans that serve more than 70 percent of Californians enrolled in Medi-Cal managed care, CEO Linnea Koopmans offered comment opposing Assembly Bill 2724. The bill authorizes the Department of Health Care Services to enter into a statewide Medi-Cal contract with Kaiser Permanente. Joining LHPC in opposing this bill are the California State Association of Counties (CSAC), 16 counties, 2 safety net clinics and the National Union of Healthcare Workers.

“LHPC has opposed this proposed statewide contract with Kaiser since it was announced in February. Now, as it moves through the Legislature, we remain strongly against its approval. Assembly Bill 2724 undercuts the state’s long-standing public plan model and endorses a two-tiered system that excludes the most vulnerable at the expense of the local Medi-Cal safety net delivery system. The bill favors the interests of a large, commercial health plan over existing local plans, providers and counties that have a long history of serving their communities.

“Local plans are trusted partners and play a crucial role in delivering care and services to the state’s most vulnerable populations. Unlike commercial plans, they are governed by public boards, operate in the open and are accountable to the public.

“AB 2724 continues to lack critical details regarding the proposed Kaiser contract – for example, the bill does not include the counties in which the proposed contract would be effective nor does it place any limitation on Kaiser’s growth, significantly impacting the local safety net and countering decades of local governance enacted through state statute and local ordinances. Given these serious concerns, LHPC remains opposed to AB 2724 and the proposed Kaiser contract.”  

Learn more about the details of the Kaiser deal, its controversial formation, and specific concerns about the impact on local health plans if implemented here.

About LHPC

Local Health Plans of California (LHPC) is a statewide trade association that represents all 16 of the community-based, not-for-profit health plans that provide access to critical and comprehensive healthcare services for low-income populations enrolled in California’s Medicaid program, “Medi-Cal,” in 36 out of 58 counties in the state. With over 8.5 million enrollees, our plans serve approximately 70 percent of all Medi-Cal managed care beneficiaries. LHPC member plans cover more lives than 49 other states’ entire Medicaid programs. More here.

Media Contact:
Alexandra Angel | (916) 225-1598