Lackner

In this proceeding, plaintiffs challenge the constitutionality of Welfare and Institutions Code section 14016.5, which provides that MediCal beneficiaries will be assigned to and enrolled in a managed care plan unless the Medi-Cal beneficiary timely elects to obtain services from a fee-for-service provider and certifies that he or she has an established relationship with a Medi-Cal provider. Plaintiffs contend that this “default” provision forces certain Medi-Cal recipients to be involuntarily enrolled in a managed care plan and denies them their right to choose their own health care provider.

Background

The Statute

The California Medi-Cal program funds health care services for recipients of public assistance and for other medically indigent persons. (§ 14000 et seq.) The program provides two health care options: (1) a fee-for-service plan and (2) a prepaid managed health care plan. (§ 14016.5, subd. (b).) The Legislature has declared its intent to encourage enrollment in managed care plans to improve the quality and efficiency of delivery of health care services and to cut costs. (§§ 14000, subds. (a) & (c), 14201 .)

Medi-Cal applicants are required to attend a…