Medi-Cal managed care plans: administrative costs.

Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which basic health care services are provided to qualified low-income persons. One of the methods by which these services are provided is pursuant to contracts with various types of managed care plans. Existing law authorizes the department to negotiate and establish an individual administrative cost limit in its contracts with prepaid health plans or Medi-Cal managed care plans contracting to provide services to Medi-Cal beneficiary enrollees. This bill would prohibit prepaid health plans and Medi-Cal managed care plans contracting to provide services to Medi-Cal beneficiary enrollees from including the cost of greeting cards or gifts given to providers as administrative costs.