Partnership HealthPlan of California (PHC) is pleased to be able to absorb most of the state-proposed rate cuts for Medi-Cal service providers in its service area during the next year. 

Cost-cutting legislation signed by Gov. Jerry Brown in 2011 mandated cuts in payments to providers who accept Medi-Cal patients.

AB 97 included several provisions relating to co-payments for patients and provider reimbursements for services.

Because PHC is a county organized health system (COHS) which receives payments from the state on a capitated “per member” basis, it can use its resources to help absorb some of the cuts through its managed care model.

“PHC’s network of medical providers has stuck with us through good economic times and bad,” said Jack Horn, CEO of Partnership HealthPlan of California. “The state’s fiscal crunch has always been a challenge to us, but we’re very happy that we can keep these cuts away from our doctors for the time being. Moving forward, we’re confident that our managed care initiatives will bring even more savings which we can use to help our providers, and add to benefits for our members.”

State regulators are aware of the need to keep access to care open for the state’s poor and underserved residents.

Last week, the Department of Health Care Services released a list of 44 medical specialties whose providers would be exempt from the rate reduction.

That exemption, combined with PHC’s absorption of the rest, is expected to go a long way in keeping and expanding the network of providers who accept Medi-Cal patients in Partnership HealthPlan of California’s service area.

On Oct. 23, the PHC Governing Board followed its Finance Committee recommendation to absorb the rate cuts.

Partnership HealthPlan of California is the county organized health system selected by the state of California to provide a Medi-Cal managed care delivery system to 14 northern California counties: Del Norte, Humboldt, Lake, Lassen, Marin, Mendocino, Napa, Modoc, Shasta, Siskiyou, Solano, Sonoma, Trinity and Yolo.

PHC began operating in 1994. Additional information can be found at www.partnershiphp.org .