HCAI to Invest $1.9B in Behavioral Health Workforce Over Five Years

California's Health Care Affordability Advisory Committee meeting on July 17, 2025, spotlighted a significant investment in behavioral health and a push for greater transparency in prescription drug pricing. The Department of Health Care Access and Information (HCAI) announced a groundbreaking $1.9 billion initiative aimed at enhancing the state's behavioral health workforce over the next five years. This funding will support a wide range of practitioners, from peer support specialists to psychiatrists, and will kick off with two key programs: a loan repayment initiative and a graduate medical education program for psychiatry residents, set to launch this summer.

In addition to workforce development, the meeting addressed the need for increased oversight of pharmacy benefit managers (PBMs). Proposed changes would require PBMs to be licensed by the Department of Managed Healthcare and to provide data to HCAI's Health Care Payments Data Program. This move aims to improve drug affordability for Californians by enhancing transparency around prescription drug costs.

The meeting also highlighted the expansion of the CalRx program, which will now include partnerships with brand-name drug manufacturers. This change is designed to tackle supply chain disruptions and market manipulation that threaten access to essential medications, particularly in reproductive health. The CalRx program will have $5 million allocated to address urgent pharmaceutical needs.

As HCAI prepares for the implementation of these initiatives, the focus remains on improving healthcare affordability and access for all Californians. The committee's discussions signal a proactive approach to addressing critical issues in the state's healthcare landscape, with anticipated outcomes that could reshape the future of behavioral health and pharmaceutical pricing in California.