Health Net Cancels Assisted Living Benefit for 3,500 California Medi-Cal Members
Health Net will terminate its optional assisted living benefit under CalAIM effective December 31, 2026, affecting approximately 3,500 Medi-Cal enrollees, most elderly with dementia or cognitive impairments. CalViva Health and Community Health Plan of Imperial Valley have also notified the state of their intent to discontinue the benefit. The benefit covers 24-hour care costs at board-and-care homes and memory care facilities, with members paying room and board. Advocates report some residents have already been dropped at emergency rooms and warn that members may face homelessness or hospital cycling without alternative placement options.
The termination forces Medi-Cal managed care plans to transition thousands of members requiring 24-hour supervision to alternative long-term care settings by year-end, with potential financial and quality impacts from emergency room utilization and institutional placements if community options cannot be secured.
Managed Care · LTSS · Long-Term Care
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