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Federal, State Budget Proposals Threaten Health Care in California

What’s happening: Yesterday, Gov. Gavin Newsom released the May budget revision, which included proposals to pull away $1.6 billion in funding dedicated to health care organizations through last year’s Proposition 35. This came just days after the House Energy and Commerce Committee released a proposal to cut more than $715 billion from Medicaid (Medi-Cal in California). 

Proposed Changes to Medicaid Health Care-Related Tax Rules Threaten MCO Tax, Hospital Fee Program

What’s happening: The Centers for Medicare & Medicaid Services (CMS) has issued proposed changes to the Medicaid health care-related tax rules that present significant risks for California’s managed care organization (MCO) tax and Hospital Quality Assurance Fee Program — both of which hospitals rely on to deliver patient care. Comments on the proposed rule are due to CMS by July 14.