Historical May Revision Baseline: DHCS Proposed Moving About 2 Million UIS Members to Fee-for-Service January 1, 2027
This record preserves what DHCS published in the May 14, 2026 May Revision: a proposal to move approximately 2 million members with unsatisfactory immigration status from Medi-Cal managed care to fee-for-service effective January 1, 2027, with proposal-stage General Fund reductions of $583.8 million in 2026–27 and $1.5 billion ongoing.
Those figures are a historical budget estimate, not a clinic revenue forecast, member notice, final contract instruction, or proof that every managed-care payment ends. The May Revision also described potential loss of managed-care-only services such as Enhanced Care Management and Community Supports, but it did not publish a member-by-member transition plan or FQHC contract remedy.
Researchers and finance teams may use this artifact to understand how the policy was initially scored; patient, care, billing, and contracting teams must use current DHCS implementation guidance instead. Analyze only de-identified aggregates and keep member immigration status, eligibility, diagnoses, authorizations, claims, and contract records in their approved systems rather than FQHC Talent.
Part of
- California's state-only Medi-Cal coverage
The move from managed care to fee-for-service
Key points
- Historical evidence: the May Revision estimated about 2 million affected members and $583.8 million General Fund reduction in 2026–27; do not substitute that proposal-stage score for current guidance.
- Keep this managed-care-to-FFS policy separate from dental, premium, and state-only FQHC/RHC PPS policies, even when their planning windows overlap.
- Use current DHCS guidance for member, care, billing, and contract action; keep all member-level and contract data in approved systems outside FQHC Talent.
Sources for this story
California Department of Health Care Services — FY 2026–27 May Revision highlightsSources for your board packet
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Affected FQHCs
FQHC Talent. (2026, May 14). Historical May Revision Baseline: DHCS Proposed Moving About 2 Million UIS Members to Fee-for-Service January 1, 2027. Source: California Department of Health Care Services — FY 2026–27 May Revision highlights. Retrieved September 28, 2026, from https://www.fqhctalent.com/intel/may-revise-uis-managed-care-to-ffs-jan-2027
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