WASHINGTON, D.C. – Congresswoman Lois Capps thanked her constituent Bob Freeman, Deputy CEO of CenCal Health, for his testimony yesterday before Congresswoman Capps and the Energy and Commerce Committee.  Mr. Freeman testified about the experience of California’s five County Organized Health Systems, including CenCal Health, as successful, community-sponsored health plans. He also encouraged the Committee to take into account the effectiveness of local health care delivery options when considering the components of national health reform.  Mr. Freeman’s testimony was part of a series of four hearings on comprehensive health care reform that the Energy and Commerce Committee is holding this week.

“I want to thank Bob Freeman, Deputy CEO of CenCal Health, for sharing his time and expertise with me and my colleagues on the Energy and Commerce Committee,” said Capps, Vice-Chair of the Energy and Commerce Committee’s Health Subcommittee.  “CenCal Health is a model for innovation and excellence in community-sponsored health care and I hope we can encourage this type of local health care delivery as we move forward with comprehensive health care reform.” 

CenCal Health (formerly The Santa Barbara Regional Health Authority) administers several publicly-funded health care plans serving the residents of Santa Barbara and San Luis Obispo counties. The program is the oldest Medicaid managed care program of its kind in the country and has proven that the Medi-Cal program can be operated more equitably and efficiently on a county level, with greater participation of private and public physicians and other health providers. CenCal Health has been able to organize the Medi-Cal delivery system of health care in the County in an innovative way due to the Centers for Medicare and Medicaid Services (CMS) granting CenCal Health waivers from specific provisions of federal Medicaid law. Under these waivers, CenCal Health is categorized as a "Health Insuring Organization" (HIO). These waivers are renewed every two years, allowing CMS to evaluate the operations and effectiveness of the program. The Medi-Cal program initially received pilot project status from the State and Federal governments to test primary care physician case management, to contain costs through a budgeted health system, and to offer provider and member incentives. Medi-Cal has since become a demonstration program for other counties and states, and has served as a model for Medicaid reform.

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Pictured above: (center) Congresswoman Capps meets with Central Coast firefighters to discuss emergency preparedness.