CalOptima Health, the single largest health insurer in Orange County, has approved spending of $429.6 million from reserves to increase reimbursement rates for hospitals and specialists over the next 30 months.
The investment will help improve access for members and boost reimbursement rates paid to hospitals amid recent federal policy changes that have resulted in the loss of Medi-Cal coverage for residents, CalOptima said.
“As a board, we made a concerted effort to increase our reserves in anticipation of growing pressures on our health care system, knowing we would need the flexibility to support the providers and hospitals who serve CalOptima Health members every day,” CalOptima Board Chair and Orange County Supervisor Vicente Sarmiento said in a statement.
With the recent announcement, the Orange-based public agency has invested nearly $1 billion in provider rate increases since 2024.
The new rates will take effect July 1 and run through Dec. 31, 2028.
