California Explored Mandated Home Care Benefits
Governor Gavin Newsom is reviewing a bill to study covering in-home care services under Medi-Cal as benefits shift.
Updated on Oct. 2, 2026 in Eldercare
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Governor Gavin Newsom is considering legislation to evaluate the feasibility of mandating in-home care services for Medi-Cal enrollees. This proposal arrives as Health Net plans to eliminate assisted-living benefits for some patients starting in 2027.
Why it matters
The proposed study addresses a gap in care for elderly residents who face limited options for home-based support. This initiative is particularly urgent as existing provider incentives currently favor facility-based care over home and community-based alternatives.
State analysis indicates that a 10% reduction in home-based service programs would cost $57 million in the first year and over $1 billion over five years. Currently, 18,000 individuals remain on the California Assisted Living Waiver waiting list.
The players
Gavin Newsom
The Governor of California who is currently considering legislation regarding Medi-Cal benefit expansions.
Health Net
A health insurance provider operating in California that manages Medi-Cal plans and is restructuring its assisted-living coverage.
The details
The proposed bill directs state officials to study the integration of in-home care into mandatory Medi-Cal benefits, which are currently treated as optional services. Simultaneously, Health Net has announced it will discontinue assisted-living coverage in certain counties, further limiting access for those who rely on community-based support. The state is exploring these mandates to counter a system that lacks sufficient incentives for providers to prioritize home care over institutional settings.
Timeline
September 2026: Health Net announced the upcoming discontinuation of assisted-living benefits.
January 1, 2027: Health Net will officially cease assisted-living benefits in specific counties.
Health Landscape
The proposed bill attempts to address structural coverage gaps highlighted by the state's ongoing administration of the California Assisted Living Waiver program. It marks a shift toward evaluating mandated, rather than optional, home-based care in the face of dwindling private provider support.
Medi-Cal enrollees who currently rely on assisted-living or home-based benefits should review their coverage documents ahead of the January 1, 2027, changes. It is worth discussing your specific care needs and long-term support options with your physician or a patient advocate.
The takeaway
Legislative efforts are underway to address the state's reliance on optional home-care benefits as private coverage options shrink. Patients should track their specific plan documents for benefit changes and consult a healthcare provider regarding long-term care planning.
Further reading
For more on how state policies affect long-term support, visit our Eldercare resources.
Source note: This article includes information reported by El Observador.
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