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New healthcare plan launches on Central Coast amid looming federal medicaid cuts

The Marian Regional Medical Center in Santa Maria.
Courtesy of @DignityHealthCC Instagram
The Marian Regional Medical Center in Santa Maria.

A new health plan is launching on the Central Coast just before federal lawmakers move forward with major cuts to Medicaid, a change that could affect how some seniors and people with disabilities access care.

The plan, called CenCal CareConnect, is designed for residents who qualify for both Medicare and Medi-Cal in Santa Barbara and San Luis Obispo counties. It replaces two separate insurance systems with a single managed care plan, giving members one card and one provider network.

CenCal CEO Marina Owen explained that the plan also adds benefits that aren’t typically covered.

“We were able to provide more vision care, more pay for hearing aids,” Owen said. “We're able to add a flexible spending card over-the-counter so that if folks need test strips or any over-the-counter medicines they would have, they'd have a spending card to provide that at no cost.”

Roughly 24,000 residents are eligible across both counties. Owen noted that enrollment is voluntary and residents can remain under their current coverage if they prefer.

“There's about over 20,000 individuals that would be eligible. It's either for seniors, 65 and over or for those who have disabilities who are younger who would who are on Medicare,” Owen said.

The plan’s launch coincides with states across the country trimming Medicaid benefits in response to federal budget reductions. Because CareConnect is largely funded through Medicare rather than Medicaid, Owen said services will likely not be affected by the cuts.

Enrollment opens Wednesday, with coverage starting January 1st.

Gabriela Fernandez came to KCBX in May of 2022 as a general assignment reporter, and became news director in December of 2023. In September of 2024 she returned to reporting full time.
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