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What's New

DMHC Reviewing the Acquisition of Magellan by Centene

The Department of Managed Health Care (DMHC) is currently reviewing the acquisition of Human Affairs International of California (HAI-CA) and Magellan Health Services of California, Inc. – Employer Services (MHSC) and MHSC’s indirect parent, Magellan Health, Inc. (Magellan) by Centene Corporation (Centene). The Department held a public meeting on October 27, 2021, and accepted public comments at the meeting. Additionally, the public had an opportunity to submit written comments on the transaction until 5 p.m. on November 3, 2021. The DMHC is considering the public comments submitted as the Department continues to review the transaction.

The DMHC issued a finding that the acquisition of Magellan by Centene is a “major transaction or agreement” under Health and Safety Code (HSC) Section 1399.65. Upon due consideration, the Department determined that the specific facts of this change of control meet criteria set out in Section 1399.65, subdivision (g)(1). Accordingly, the change of control proposed through the Notices is a major transaction or agreement, and a public meeting and independent analysis is required as set forth in Section 1399.65, subdivisions (a)(4) and (c). The public may view the Independent Analysis Report pursuant to HSC Section 1399.65(a)(4) and 1399.65(b).

For more information, visit the DMHC Mergers webpage.

DMHC APL on Continued Coverage of COVID-19 Diagnostic Testing

The DMHC issued an All Plan Letter (APL) reminding health plans that federal law continues to require them to cover COVID-19 testing for their enrollees when the testing provides an individualized assessment of whether the enrollee has a COVID-19 infection. Health plans must cover the testing whether it is performed in or out of network and may impose no prior authorization or cost-sharing requirements on such testing. Health plans must cover the testing whether the person is symptomatic or asymptomatic and regardless of whether the person has had recent known or suspected exposure to COVID-19.

DMHC APL 21-020 – Continued Coverage of COVID-19 Diagnostic Testing

DMHC Celebrates 20 Years of Consumer Protection in 2020 Annual Report

In 2020, the Department of Managed Health Care (DMHC) celebrated the 20-year anniversary of the creation of the Department. The DMHC also celebrated the 45th anniversary of the Knox-Keene Act and the 10th anniversary of the Affordable Care Act (ACA). The 2020 Annual Report celebrates these significant anniversaries and highlights many of the important achievements in health care and consumer protection over the past 20 years.

DMHC Takes Action to Ensure Health Plans Comply with California's Mental Health and Substance Use Parity Law

The California Department of Managed Health Care (DMHC) today issued guidance to ensure health plans comply with amendments made to California's mental health parity law enacted under Senate Bill (SB) 855, authored by Senator Scott Wiener and signed by Governor Gavin Newsom last year.

"The DMHC is committed to ensuring Californians can access quality mental health and substance use disorder services. This is especially critical right now as people are dealing with the COVID-19 pandemic that has no doubt had an impact on the mental health of many," said DMHC Director Mary Watanabe. "This new law strengthens California's mental health parity statute and will help improve access to quality mental health and substance use disorder services."

Press Release

DMHC APL 21-002 - SB 855, Mental Health and Substance Use Disorder Coverage

DMHC Directs Health Plans to Cover COVID-19 Vaccines with No Cost-Sharing to Enrollees

The California Department of Managed Health Care (DMHC) issued guidance reminding health plans that all qualified, approved COVID-19 vaccines must be provided with no cost-sharing for health plan enrollees, regardless of whether the enrollee receives the vaccine from an in-network or out-of-network provider.

"As we begin to enter this new phase of the pandemic with vaccines becoming available, the DMHC is reminding health plans they must cover the cost of COVID-19 vaccines," said DMHC Director Mary Watanabe. "It is critical that all Californians have access to a safe COVID-19 vaccine to help protect their health. Financial challenges should not and will not get in the way of getting protection from COVID-19."

Press Release

Fact Sheet

DMHC APL 20-039 – Health Plan Coverage of COVID-19 Vaccines

2018 Annual Report and Infographic

The Department of Managed Health Care 2018 annual report and infographic are now available online. Both of these documents highlight the DMHC’s activities during 2018 and include key statistics about the Department.