AHF Prevails in CA’s Unconstitutional Attempt to End Medi-Cal Contract

Settlement agreement extends AHF’s longstanding healthcare services for AIDS patients through December 31, 2025

LOS ANGELES--(BUSINESS WIRE)--Patients living with AIDS in California will continue to receive uninterrupted Medi-Cal coverage through December 31, 2025 thanks to a final legal settlement agreement between AIDS Healthcare Foundation (AHF) and the State of California, its Department of Health Care Services (DHCS), and DHCS Director Michelle Baass.

In a move that ultimately was found unconstitutional, the State and its representatives attempted to end AHF’s very long-standing Medi-Cal contract to provide health care to about 770 people living with AIDS in California after AHF mailed patients suggesting they contact DHCS.

AHF sued, alleging violations of the First Amendment, and the court issued a preliminary injunction. The lawsuit was pursued in the U.S. District Court, Central District of California (Los Angeles), and the U.S. Court of Appeals, Ninth Circuit.

The final settlement agreement was completed March 1, 2024. The dispute is now over, and AHF’s contract has been further extended through December 31, 2025.

“With this resolution, we are glad to be able to focus entirely on serving patients through our lifesaving managed care program for people living with AIDS,” said Donna Stidham, AHF Chief of Managed Care, and one of the key people involved in the creation and management of the Positive Healthcare program. “Our patients, most of whom have been with Positive Healthcare for years, are thrilled that their care will continue uninterrupted. Our case managers and employees also are grateful to be able to continue providing care and services, which patients repeatedly tell them has made a huge difference in their lives.”

AHF created its Positive Healthcare Medi-Cal plan for the State in 1995 and has managed it ever since.

AIDS Healthcare Foundation (AHF), the world’s largest HIV/AIDS healthcare organization, provides cutting-edge medicine and advocacy to more than 1.9 million individuals across 45 countries, including the U.S. and in Africa, Latin America/Caribbean, the Asia/Pacific Region, and Eastern Europe. To learn more about AHF, visit us online at AIDShealth.org, find us on Facebook, follow us on Instagram, Twitter, and TikTok, and subscribe to our AHFter Hours podcast.