The California Health Care, Research and Prevention Tobacco Tax Act of 2016 (Prop 56) created new revenues dedicated to the Medi-Cal program. Physicians receive supplemental payments in both fee-for-service and Medi-Cal managed care when providing Medi-Cal services under certain CPT codes. 

While the California Department of Health Care Services (DHCS) began disbursing FY 2017-2018 supplemental fee-for-service payments in January 2018, federal approval of the supplemental Medi-Cal managed care payments was delayed. This resulted in delayed payment for Medi-Cal managed care services.

DHCS began dispersing the FY 2017-2018 funds to the plans as part of its capitated payments in May.  This includes both the go-forward payments and the retroactive payment for clean claims or accepted encounter data with dates of service between July 1, 2017, and the date the plan received the Prop 56 funds.

Plans were required to issue supplemental payments to qualifying physicians within 90 days. The 90-day window ended August 31 and physicians should have already received their supplemental payments.

Practices that believe they have not received their supplemental payments, should contact the plan. Plans chose to pay physicians directly, pass all payment responsibility down to their delegated plan/groups or split the payment responsibility between the plan and the delegated plan/group.

CMA has created a comprehensive list (below) of Medi-Cal Managed Care plans identifying who distributed the incentive.

Physicians with questions can contact CMA’s Reimbursement Helpline at (888) 401-5911.