California regulators ordered Health Net to fix how it’s handling the termination of assisted living services for low-income residents after the insurer’s abrupt decision left patients and providers scrambling. The state’s corrective action plan requires Health Net to extend services for all members until the end of the year, rather than stopping some as soon as October.
Health Net, one of the largest Medicaid insurers in the country, notified providers several months ago that it was ending its assisted living and home care services contracts. The services are optional under Medi-Cal — California’s version of Medicaid — meaning an insurer can decide annually whether it will continue coverage. Providers and family members said they got little or no warning, leaving them confused and panicked about finding other arrangements.
Hagar Dickman, director of long-term services and supports at Justice In Aging, said the state’s corrective action plan resolves the immediate crisis but fails to address the long-term problem: “Thousands of older Californians are still set to lose their housing on January 1st.”
