California Governor Defends Medicaid Spending on Housing and Food Amid GOP Fraud Claims
California Governor Gavin Newsom is defending the state's use of Medicaid funds for housing and food services for high-cost patients, as Republican lawmakers characterize these expenditures as waste, fraud, and abuse. The state has incorporated social determinants of health services into its Medicaid program to address needs of complex, high-utilizing enrollees. Newsom acknowledges concerns about potential federal funding cuts but maintains the state's holistic care approach is appropriate. This political tension creates uncertainty for managed care organizations operating California's CalAIM program, which relies heavily on these non-traditional service categories.
MCOs contracted under CalAIM must prepare for potential federal scrutiny or funding restrictions on housing and food services that are central to their population health and cost containment strategies.
Managed Care · LTSS
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