Managed care plans are a key partner in the statewide CalAIM initiative. To support the implementation and expansion of CalAIM, the Department of Health Care Services (DHCS) developed the CalAIM Incentive Payment Program. DHCS anticipates participating managed care plans will use incentive funds to make strategic investments in Enhanced Care Management and Community Supports providers, local partners, and other providers. In 2022, the first year of the program, DHCS distributed $300 million in incentive funds to Medi-Cal managed care plans.

In an issue brief, Local Health Plans of California reviewed four local plans’ strategies for disbursing incentive funds in their service areas. With information gathered through interview and survey responses from member plans, Local Plan Strategies for CalAIM Incentive Payment Program, examines how the plans are using incentive funds to enhance their internal systems and expand Enhanced Care Management and Community Support services to support Medi-Cal members with the most complex needs.

The four plans profiled are Inland Empire Health Plan, Kern Family Health Care, Partnership HealthPlan of California, and Central California Alliance for Health.