13 September 22, 2026
Honorable Mayor and City Council
City of Long Beach
California
RECOMMENDATION:
Recommendation to authorize the City Manager, or designee, to execute all necessary documents and any subsequent amendments, including amendments to the award amount or terms, with Health Net of California, Inc. (Health Net) to enter into a fee-for- service agreement in an estimated annual amount of $45,000 for the CalAIM Enhanced Care Management (ECM) Program, for a two year period, back-dated to begin on July 15, 2025, with the option to renew for two additional one-year periods, at the discretion of the City Manager; and,
Increase appropriations in the Health Fund Group in the Health and Human Services Department by $45,000, offset by fee revenue. (Citywide)
DISCUSSION
On March 11, 2025, City Council authorized the Department of Health and Human Services (Health Department) to enter into an agreement with Health Net of California, Inc. (Health Net) for the CalAIM Community Supports (CS) Program to provide essential services to up to 100 Medi-Cal participants per year through targeted interventions aimed at addressing essential needs and establish a foundation for long-term housing stability and health improvement. This fee-for-service agreement was fully executed and effective on July 15, 2025.
On October 15, 2025, Health Net amended the agreement to incorporate Health Net’s network of Enhanced Care Management (ECM) services for Medi-Cal beneficiaries. CalAIM ECM is a Medi-Cal benefit that addresses clinical and non-clinical needs of individuals with complex needs through the coordination of services and comprehensive care management, services that the Health Department already provides.
City Council approval is requested to authorize the City Manager or designee to enter into a fee-for-service agreement with Health Net of California, Inc., as part of Amendment #1 to conformed agreement 37401, for ECM services, effective July 15, 2025. The fee-for-service agreement will be part of an amendment to the existing agreement with Health Net for the provision of Community Support services, which was previously approved by the Council. The retroactive effective date is requested to align the ECM and CS programs into one agreement and to authorize the recovery of fees for services provided since the effective date. The ECM agreement with Health Net will operate in conjunction with the existing CalAIM Community Supports Program as part of the approved master agreement, which operates on a fee-for- Health and Human Services
2525 Grand Avenue, Long Beach, CA 90815
(562) 570-4000
Honorable Mayor and City Council
September 22, 2026
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APPROVED:
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THOMAS B. MODICA
CITY MANAGER
service basis, providing essential services to up to 100 participants per year. The Health Net ECM fee-for-service agreement portion of the existing agreement will enable the Health Department to be reimbursed by Health Net for providing ECM services to eligible Medi-Cal members. ECM services will be reimbursed as per the fees listed in amendment one of the existing agreement with Health Net.
This matter was reviewed by Deputy City Attorney Nicholas Masero and by Budget Analysis Officer Greg Sorensen on August 31, 2026.
TIMING CONSIDERATIONS
City Council action is requested on September 22, 2026, to be compliant with the program's statutory requirements and administer contracts before the deadline set forth by the funder.
FISCAL IMPACT
The City will receive grant reimbursement funding in a fee-for-services arrangement with Health Net to operate the CalAIM ECM programming for a two-year period commencing July 15, 2025, with the option to renew for two additional one-year periods. Health Net shall pay the Health Department for the provision of ECM services. An appropriation increase in the amount of $45,000 is requested in the Health Fund Group in the Health and Human Services Department, offset by fee revenue. Funding will support ECM administrative costs. There are no non-reimbursable expenses anticipated with acceptance of these funds. This recommendation has minimal staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. No match or in-kind service is required. There is no local job impact associated with this recommendation.
SUGGESTED ACTION:
Approve recommendation.
Respectfully submitted,
Alison King
Director
Health and Human Services