2025 California Association of Health Plans (CAHP) Annual Conference
For the first time, Advent Advisory Group attended the 2025 California Association of Health Plans (CAHP) Annual Conference which convened over 1,000 healthcare leaders, policymakers, and innovators to address the evolving landscape of managed care in California. Central themes included regulatory updates, innovations in care delivery, and strategies to improve access, affordability, and health outcomes. A major focus was the anticipated impact of H.R.1, the One Big Beautiful Bill Act (OBBBA), which poses significant challenges across all sectors of California’s health insurance ecosystem.
Medicare Advantage (MA):
- Stricter eligibility rules may disenfranchise many lawfully present immigrants.
- Increased costs for low-income beneficiaries due to changes in:
- Medicare Savings Programs (MSPs)
- Low-Income Subsidy (LIS)
- Higher out-of-pocket costs for dual-eligible individuals under Medicare Part D.
- Estimated 4% reduction in provider payments.
- Limited drug coverage, including exclusion of orphan drugs.
- Reduction or elimination of supplemental benefits (e.g., dental, vision, hearing aids, gym memberships).
- Potential withdrawal of some insurers from the MA market.
Why Ratings Matter:
- Up to $30 billion in federal funding at risk.
- Coverage loss projected for approximately 3.4 million Medi-Cal members.
- New work requirements and eligibility restrictions may further limit access.

Covered California (Exchange Market):
- Enhanced federal tax credits set to expire on December 31, 2025.
- Projected 10.3% premium increase in 2026.
- Financial impact by income level:
- Individuals earning <$40,000: premiums may double.
- Families earning >$62,000: premiums may increase by over $500/month.
- Family of four earning >$129,000: premium will increase by over $750/month.

Commercial Market:
- Expanded Health Savings Account (HSA) eligibility for bronze and catastrophic plans.
- Permanent pre-deductible coverage for telehealth services.
- Formal recognition of Direct Primary Care (DPC) arrangements as HSA-compatible.

As California leaders assess the sweeping implications of these proposed changes, Advent Advisory Group is helping health plans evaluate exposure, model financial impacts, and prepare operational strategies across Medicare, Medi-Cal, and Commercial lines.
Connect with us to discuss how your organization can navigate policy uncertainty and position for stability heading into 2026.
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