California Honored for Improving Health for More Than Half a Million Medi-Cal Members

Oxon Hill, Md.— The National Association of Medicaid Directors (NAMD) today announced that the California Department of Health Care Services (DHCS) has received the 2026 Spotlight Award for achieving measurable improvements in Medicaid (Medi-Cal in California) member health outcomes while reducing avoidable costs through its Community Supports services. By connecting Medi-Cal members to housing supports, medically supportive meals, asthma remediation, and other nonclinical supports, California is helping members stabilize sooner and avoid emergency department visits, hospital stays, and long-term care placements.

Since launching in 2022 under California Advancing and Innovating Medi-Cal (CalAIM), Community Supports have reached more than 528,000 Medi-Cal members and delivered more than 1.5 million services. Two consecutive analyses submitted to the Centers for Medicare & Medicaid Services (CMS) found that these services are associated with significant reductions in emergency department visits, inpatient hospitalizations, and use of institutional long-term care. Ten of the 12 services evaluated are already producing net Medicaid savings, with reductions reaching as high as 79.9 percent.

“When we looked at what was driving poor health for so many Medi-Cal members, the answer was clear: people were struggling with the basics,” said Tyler Sadwith, California State Medicaid Director. “If you don’t know where you’re sleeping tonight, or your child’s asthma is triggered by conditions at home, traditional medical care alone can’t change your trajectory. Community Supports allow us to take a true whole-person approach, bringing practical, evidence-based help directly into Medi-Cal so we can prevent crises before they happen and help Californians stabilize and thrive.”

“California has shown that addressing housing, food, and other basic needs for Medicaid members can be done with rigor, at scale, and with real savings for taxpayers,” said NAMD Executive Director Kate McEvoy “By building on flexibilities already available and investing deeply in community partners, California created an approach that other states and territories can adapt to their own state or territory context.”

Using Flexibility Already in Medicaid

Rather than wait for new federal authority, DHCS used existing managed care flexibility that allows health plans to offer certain community-based services as cost-effective substitutes for traditional medical care, known as “in lieu of services.” Of the 15 health-related social needs services California covers, 14 are voluntary, opt-in services that managed care plans choose to offer based on local needs and the outcomes they see, an approach that has driven faster adoption and innovation than a strict mandate would have.

About NAMD’s Spotlight Award

NAMD’s annual Spotlight Award recognizes exceptional leadership and innovation in Medicaid administration. The award highlights achievements that demonstrate excellence in driving value through improved member experience and efficient use of taxpayer resources. Learn more about the other 2026 winners here.