Despite Budget Cuts, California’s Medically Tailored Meal Programs Poised to Continue

July 14, 2025

By Laurie Hanson • [email protected]

Though Medi-Cal cuts are looming, a key sub-program providing nutritious foods and meals to address chronic health conditions is expected to remain in place.

“Funding adjustments are happening; however, there is a long-term strategy with strong bipartisan support for no-cost meals aimed at improving health outcomes for beneficiaries,” said Lane, Senior Vice President of Healthcare Partnerships at ModifyHealth. Lane advises on California Advancing and Innovative Medi-Cal (CalAIM), the parent program that introduced the medically tailored, no-cost meals.

With more than 20 years of experience in health equity and expanding access to care, Lane sees food-based interventions as the future of Medicaid support. “While the state is navigating a tough budget year, this remains one of the most forward-thinking Medi-Cal and Medicaid investments in the country,” she said. “We continue to see strong engagement from the community and clinical partners, reinforcing that interventions like medically tailored meals and groceries must remain in place.”

Launched in 2022, CalAIM quickly became a national model for addressing social needs through Medi-Cal and Medicaid. Its nutritious food programs serve pediatric and adult populations, including older adults, people with chronic conditions, disabilities, postpartum women, and high-risk young adults. Eligible members are identified by their health plans and, based on their medical needs, may receive tailored meals or groceries such as fresh produce, along with nutrition counseling and support from a community health worker.

“Nutrition support helps stabilize members living with chronic and complex conditions like diabetes, congestive heart failure, hypertension, cancer, COPD, HIV, and kidney disease,” Lane said. “These are areas where clinically appropriate food interventions can directly improve outcomes and reduce avoidable, high-cost care.”

According to Lane, across CalAIM-aligned programs, participants have lowered their A1c by an average of 1.1 points within 12 weeks. That drop is associated with an average annual savings of $800 to $1,500 per diabetes patient. “That’s a meaningful clinical and financial impact,” she said. “We know that using food as an engagement tool isn’t just about health—it’s a critical strategy to reconnect high-cost members with primary care.”

Lane noted that pairing nutrition with wraparound support increases primary care engagement by 4.5 times. These results, she said, make food and nutrition programs essential components of any value-based Medicaid model.

A 2024 NIH study found a $13 return for every $1 spent on medically tailored meals. Combining food with services like registered dietitians and care coordination provides significant long-term benefits. “This is achieved through CalAIM’s focus on individuals with complex needs, regardless of age, who benefit most from medically appropriate food paired with education and coordinated care,” Lane said. “It’s a wraparound model designed not just to feed people, but to support long-term health.”

While the formal CalAIM initiative is winding down, the needs it was created to address remain. “Even as the structure changes, the focus on whole-person care continues,” Lane said. “We’re optimistic that new models will continue to fund and prioritize food and nutrition interventions because the data is clear—these services drive impact, reduce avoidable utilization, and make the system work better for the people it serves.”

“Food support is one of the few interventions that improves health, reduces costs, and increases engagement—all at once,” she added. “In a maternal population, it’s an opportunity to impact two lives for the cost of one.”

If given the chance to speak directly to legislators, Lane’s message is clear: “CalAIM proves we can do more than treat illness—we can prevent it in our most vulnerable populations. Don’t let budget pressure force a retreat from what’s working. Invest in models that keep people out of the hospital and connected to care.”