Title
Agreement: Participation in the Rate Range Intergovernmental Transfer (IGT) Program with Anthem Blue Cross [Two-Thirds Vote Required]
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FileID
File ID: 2026-00085
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion, by two-thirds vote: 1) waiving the requirement for 10-day posting of agreements over $1 million pursuant to City Code section 4.04.020(c) and Council Rules of Procedure Chapter 7, Section E.2.d.; and 2) authorizing the City Manager or designee to execute the Health Plan-Provider Agreement with participating Medi-Cal Managed Care Plan Provider - Anthem Blue Cross with a not-to-exceed amount of $3,587,113.00.
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Contact
Contact: Crystal Harland, Fire Administrative Manager, (916) 767-367, charland@sfd.cityofsacramento.org, Fire Department
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Health Plan Provider Agreement with Anthem Blue Cross
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Description/Analysis
IssueDetail
Issue Detail: The City of Sacramento Fire Department participates in the Intergovernmental Transfer (IGT) program to recover unreimbursed Medi-Cal costs. The Anthem Blue Cross agreement was not included in the original Council action on September 9, 2025, File ID 2025-01479, with other Plan Provider Agreements and requires separate approval. This agreement allows the City to receive federal matching funds via Department of Health Care Services (DHCS) and Anthem for Medi-Cal Managed Care services provided by the Sacramento Fire Department.
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PolicyConsiderations
Policy Considerations: Participation in this cost recovery program is consistent with the City Council’s adopted Budget Guidelines to pursue new and enhance existing revenue sources. The Council’s adopted Advanced Life Support (ALS) Revenue Recovery policy.
Pursuant to City Charter Section 20 and City Code Section 3.56.090, the City Council holds the delegable authority to approve the execution of contracts of $250,000 or more for supplies or nonprofessional services.
The Sacramento Code Section 4.04.020 and Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that, unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days before City Council action.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns administrative activities that do not constitute a “project” as defined by Section 15378 of the California Environmental Quality Act (CEQA) Guidelines and are otherwise exempt under Section 15061(b)(3).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The IGT transfer agreement with the DHCS and the Health Plan Provider Agreements are already in place. Approval of the Anthem Blue Cross agreement is the final step required for the City to fully participate in the 2024 IGT program and recover additional reimbursement for Medi-Cal services provided by the Sacramento Fire Department. This action ensures compliance with program requirements and maximizes federal and state funding to offset Emergency Medical Services (EMS) Division costs.
Health Plan-Provider Agreement: This agreement is an amendment between the Medi-Cal Managed Care Health Plan Provider (MMCHPPP) and the City. The Anthem Blue Cross agreement amendment commits the MMCHPP to pay the City a specified amount of the IGT-funded capitation rate increase it receives from DHCS within 30 days of receiving those funds from the State. The MMCHPP will deduct an administrative fee of 2%, 2.5%, or 5% from the amount that will be remitted to the City. The amendment specifies how the City will treat these funds from an accounting standpoint. The MMCHPP participating in the program is Anthem Blue Cross.
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FinancialConsiderations
Financial Considerations: Upon approval of this agreement, the City will apply and request an amount to be recovered through the IGT program. The revenues received will help the City recover additional reimbursement of previously unreimbursed Medi-Cal costs incurred from January 1, 2024, through December 31, 2024, consistent with the ALS Revenue Recovery policy. To receive the reimbursement from MMCHPPs, the City will be required to transfer up to approximately $4.5 million to DHCS to cover the City’s Non-federal share of the managed-care costs. This share includes the 20% fee assessed by the State to cover its costs to administer the IGT program.
The City will recover its non-federal share amount from the reimbursements received through the IGT program. This amount is net of the 2%, 2.5%, or 5% administrative fee assessed by the MMCHPPs.
The City’s contribution will be funded from the Fire Department’s EMS operating budget (12001441). The payment received from the MMCHPPs will reimburse EMS for its contribution. The additional reimbursement thereafter, will offset the EMS fiscal year expenses, consistent with the Council adopted ALS Revenue Recovery Policy.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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