California's Enacted 2026–27 Budget Keeps State-Only FQHC/RHC PPS and Full Adult Dental Through June 2027 — Four Transition Dates Must Stay Separate
DHCS's enacted-budget highlights establish four distinct policies, not one coverage cliff. First, defined UIS members move from managed care to fee-for-service on January 1, 2027; DHCS says this changes how they get care, not whether they keep Medi-Cal.
Second, SB 164 delayed the state-only FQHC/RHC PPS-to-non-PPS transition from July 1, 2026 to July 1, 2027; DHCS reports about $1 billion in 2026–27 General Fund cost to preserve PPS for that year. Third, full dental for affected adults age 19+ and dental supplemental payments are delayed to July 1, 2027; emergency dental remains covered and member-level exceptions apply.
Fourth, current DHCS member guidance describes a $30 monthly premium beginning July 1, 2027 for defined adults age 19–59 who retain full-scope coverage; the Budget Act highlights also describe a possible increase to $50 that is expressly subject to a determination in the 2027–28 May Revision, so $50 is not a current member instruction.
The enacted budget also includes $39 million for transition navigation and care coordination, but it does not name FQHC awardees or contract terms. Boards should maintain separate owners, assumptions, and readiness evidence for each policy; patient-facing teams should use the live DHCS category chart and notices rather than this budget summary.
Do not enter member immigration status, eligibility, dental, premium, or clinical records in FQHC Talent.
Key takeaways
- Finance leaders: current PPS billing continues until further DHCS notice; model the separate July 1, 2027 state-only methodology change, but do not equate statewide General Fund savings with a booked center-level loss.
- Eligibility and care teams: keep January FFS, July dental, July PPS, and July premium scripts separate; verify the member's category and notice before giving individual guidance.
- Member message: $30 is the current published July 2027 premium; the budget's possible $50 amount depends on a future May Revision determination and must not be presented as final today.
Linked evidence
California Department of Health Care Services — enacted 2026–27 Budget Act highlightsSource packet
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FQHC Talent. (2026, June 29). California's Enacted 2026–27 Budget Keeps State-Only FQHC/RHC PPS and Full Adult Dental Through June 2027 — Four Transition Dates Must Stay Separate. Linked evidence: California Department of Health Care Services — enacted 2026–27 Budget Act highlights. Retrieved September 20, 2026, from https://www.fqhctalent.com/intel/ca-budget-agreement-june-11-community-health-2026
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