California's Medically Tailored Meals Program Delivers Luxury Foods to Welfare Recipients, Including Undocumented Immigrants
A state initiative funded by nearly $12 billion in Medicaid reform provides free, high-end groceries and prepared meals to eligible Medi-Cal members.
California is providing medically tailored meals and groceries, including items like salmon, beef, and organic produce, free of charge to welfare recipients, a program that also extends to undocumented immigrants. This initiative is part of Governor Gavin Newsom's broader CalAIM (California Advancing and Innovating Medi-Cal) reform package, which has allocated nearly $12 billion to transform the state's Medicaid system.
The "medically tailored meals" program, a key component of CalAIM's "Community Supports," allows eligible Medi-Cal beneficiaries to receive prepared meals or tailored grocery deliveries at their homes. The stated goal of such programs, aligned with the "Food Is Medicine" movement, is to reduce hospitalizations and ultimately save taxpayer money. A study in Massachusetts suggested a correlation between medically tailored meals and a decrease in hospitalizations, and the U.S. House Ways and Means Committee has voted to pilot a program to pay hospitals for providing these meals to discharged patients.
Eligibility for the California program primarily requires a qualifying Medi-Cal card, a provider's recommendation, and an eligible medical condition. The state makes enrollment accessible, with former contractors noting that the program aims to include, rather than exclude, eligible individuals. Medi-Cal contractors are paid to deliver the food for up to 12 weeks, with recipients able to re-enroll afterward. The cost to taxpayers for a single recipient can exceed $1,500 over 24 weeks, covering both the food and delivery.
In California, approximately 90% of individuals receiving CalFresh, the state's version of food stamps, are also enrolled in Medi-Cal. The state extended full-scope Medi-Cal coverage to undocumented immigrants in 2024, allowing those with existing coverage to access CalAIM's Community Supports. This means that qualified undocumented immigrants in California are eligible to receive these state-funded luxury food boxes at no cost.
Companies specializing in medically tailored meals and groceries are benefiting from this trend. Between 2022 and 2024, companies nationwide reportedly billed Medicaid nearly $100 million using code S9977, an unspecified code for meals that includes medically tailored food. Project FoodBox, a California-based firm, was the largest biller in this period, receiving over $67.8 million from Medicaid. Another California-based company, Hunger: Not Impossible (now Bento Health), billed Medicaid over $7.7 million. Bento Health's website indicates that eligibility for its services is not contingent on immigration status.
California's Department of Health Care Services has stated that these food programs have resulted in a 10.5% net cost reduction. Despite these claims, the program has drawn scrutiny as middle-class families face rising grocery costs. Currently, thirteen states are utilizing federal waivers to fund medically tailored food delivery programs.