CenCal Health manages plans for San Luis Obispo and Santa Barbara counties.
This month it has distributed $5.5 million to local hospitals, mental health clinics and other programs.
CenCal Health CEO, Marina Owen, said the grants will not make up for cuts to Medicaid made in President Donald Trump's Big tax and spending Bill, but they will help offset some of the costs by recruiting and hiring 34 new healthcare professionals and expanding treatment options for patients.
“The impacts from the bill, haven't been felt yet," said Owen. "Those are very big funding impacts to hospitals and potentially to physicians, and so this is our response to try to meet the need."
The money comes from the California Department of Health Care Services.
According to Owen, CenCal Health serves 242,000 people, and she estimates at least, 30,000 people will be supported because of the grant.