The governance of Orange County’s healthcare plan for the poor, CalOptima, has come under intense scrutiny following a recent debate about the role of county supervisors on its board. The discussion, which took place over the past week, has highlighted the potential for political influence on healthcare services that support nearly one in three county residents.
The debate was ignited by Assemblyman Avelino Valencia’s proposal to remove Supervisors Vicente Sarmiento and Janet Nguyen from the CalOptima board and replace them with a panel of county department heads. Valencia argued that this change would de-politicize the board and ensure its focus remains on serving the community.
Assemblyman’s Proposal and Supervisors’ Response
Assemblyman Avelino Valencia initially proposed a bill to remove the supervisors from the CalOptima board, citing a need for good governance reforms. His proposal included the creation of a new selection committee consisting of an assemblyman, state senator, and congressman. Valencia’s move came in the wake of nearly a decade of scandals and investigations involving county supervisors on the board, including former Supervisor Andrew Do, who is currently serving a five-year prison sentence for bribery.
Supervisors Sarmiento and Nguyen pushed back against the proposal during an emergency CalOptima board meeting and a subsequent supervisors meeting. Sarmiento emphasized that CalOptima is currently stronger and more stable than ever, stating, “Today, CalOptima is arguably the strongest and most stable it’s been, something we can be proud of.” However, by Wednesday evening, Valencia had revised his bill to call for another audit of the agency instead of removing the supervisors.
CalOptima’s Current State and Future Prospects
The supervisors have maintained that CalOptima has undergone several audits confirming the absence of ongoing scandals. However, the agency’s former CEO, Michael Hunn, who was appointed by Do, is set to retire at the end of the year. Additionally, Do’s former deputy chief of staff, Veronica Carpenter, continues to work at the agency as its Chief Administrative Officer.
Auditors reviewing Do’s conduct found no evidence of bribes accepted at the agency but admitted they were not provided with many records to review. The supervisors have largely ignored a grand jury report titled “CalOptima Burns While Majority of Supervisors Fiddle,” which criticized Nguyen’s disruptive influence on the agency. Former board chair Ed Kasic, who was pushed off the board in 2012 when Nguyen joined, has expressed skepticism about the agency’s future, stating, “I think the health plan has maybe outlived its need.”
Maura Byron, the current vice chair of CalOptima, acknowledged the need for the board to be insulated from political pressure. She suggested that healthcare professionals should play a more significant role in decision-making. Sarmiento, however, argued that politics are inherent in any board and that removing supervisors would not eliminate political influence.
