TO: Board of Supervisors
FROM: Alexander Alarcón, Interim Director of Corrections
REPORT BY: Anabel Silva, Staff Services Analyst
SUBJECT: Adopt a Resolution for reimbursement for administrative costs for the Medi-Cal Inmate Program and renew an agreement with California DHCS for Medi-Cal County Inmate program (MCIP)

RECOMMENDATION
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Adopt a Resolution for reimbursement for administrative costs for the Medi-Cal Inmate Program (MCIP); and approve and authorize Agreement No. 170747B with the California Department of Health Care Services for a maximum up to $20,000 per fiscal year for the term July 1, 2026 to June 30, 2029, to participate in the MCIP. (Fiscal Impact: $20,000 Revenue; General Fund; Discretionary)
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BACKGROUND
Federal law prohibits claiming Medicaid funds for healthcare services provided to incarcerated persons residing in correctional facilities. This federal prohibition does not apply when an incarcerated person receives inpatient services at a medical facility located off the grounds of the correctional facility for a stay of more than 24 hours and if the incarcerated person is found to be Medicaid eligible. The Affordable Care Act expanded Medicaid eligibility resulting in a large portion of Napa County’s incarcerated population being eligible for Medi-Cal, California’s Medicaid program. The Medi-Cal County Inmate Program (MCIP) establishes a process for submitting medical claims for Napa’s incarcerated population to the California Department of Health Care Serviced (DHCS).
MCIP is voluntary and the County has the option to participate in this program by entering into an agreement with DHCS. The purpose of the MCIP agreement is to establish a process to submit claims for Medi-Cal enrolled incarcerated people and to set amounts needed to satisfy the County’s responsibility to reimburse DHCS for the non-federal share of MCIP services costs incurred by DHCS. Staff will continue to work with Queen of the Valley Medical Center and other local medical providers to ensure incarcerated person’s medical claims are submitted in accordance with MCIP. If the County does not participate in MCIP, Corrections will remain responsible for incarcerated person’s medical costs that exceed the contracted limit with Wellpath of $25,000 per incident. Wellpath provides contracted medical service to incarcerated people at the Jail.
Under the agreement with DHCS, Corrections will be responsible for the administrative services costs listed below.
Administrative services cost of :
$4,605.68 for July 1, 2026 through and including June 30, 2027
$4,971.37 for July 1, 2027 through and including June 30, 2028
$5,373.63for July 1, 2028 through and including June 30, 2029
Approval of Agreement No. 170747B with California Department of Health Care Services for a maximum up to $20,000 per fiscal year for the term July 1, 2026 to June 30, 2026 will allow Corrections to participate in MCIP and use Federal funding for Medi-Cal eligible healthcare costs.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Corrections Medical Services Subdivision 14000-04 |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
This agreement will allow Corrections to use Federal funding to cover inpatient medical costs for Medi-Cal eligible County Jail incarcerated population. |
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Is the general fund affected? |
Yes |
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Future fiscal impact: |
Each fiscal year’s expenses will be budgeted accordingly. |
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Consequences if not approved: |
If the agreement is not approved, Corrections will be unable to access Federal funding for incarcerated person’s medical costs for Medi-Cal eligible incarcerated persons |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.