SACRAMENTO, CA – Following the release of Governor Newsom’s revision of the 2026-27 state budget, Local Health Plans of California Board Chair and CenCal Health CEO Marina Owen released the following statement:

“Local plans are concerned to see that the state is forced to respond to federal changes to the Medi-Cal program by reversing a decade of hard-fought gains to provide comprehensive, integrated, and coordinated care to so many in our local communities.    

“By moving vulnerable Medi-Cal members, many with complex health needs, out of local, community-based plans, they will no longer receive the coordinated, person-centered, accountable care that has become the cornerstone of the Medi-Cal program. Local plans ensure that members receive needed, supportive care where they are, including access to critical primary care, specialty care and CalAIM programs like Enhanced Care Management and Community Supports. Local community-based plans are known for providing high quality, equitable, and accessible services for members of their community which can’t be replicated in the fee-for-service delivery system.  

“The viability of the safety net is a serious concern for local plans and we remain committed to working with the Legislature and Administration to protect health care as they finalize the budget.”

Source: May Revision Budget Summary

About LHPC

Local Health Plans of California (LHPC) is a statewide trade association that represents all 17 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 51 out of 58 counties in the state. With 9.1 million enrollees, our plans serve approximately 70 percent of all Medi-Cal managed care beneficiaries. More here.

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