Urge Legislators to Restore MCO Tax Funding for the Coming Fiscal Year 

ACTION NEEDED

Contact your legislator and ask that they express to the Assembly Speaker and Senate Pro-Tem — as well as the chairs of the Assembly and Senate Budget Committees — that they must restore Medi-Cal investments funded by the managed care organization (MCO) tax in order to protect access and care for California’s 15 million Medi-Cal enrollees.

TIMING

Contact your legislators no later than June 6 to advocate for full restoration of this critical funding. 

Please email Emily Schroeder, legislative assistant, at eschroeder@calhospital.org after you have contacted your legislator.

RESOURCES

BACKGROUND

Last year, the Legislature approved, and the governor signed, a historic budget deal to dedicate revenue from the MCO tax to expand access to health care for low-income patients. This funding was primarily intended for targeted rate increases in the Medi-Cal program, generally starting in 2025, to increase rates that have not been adjusted in over a decade. The governor’s latest budget proposal would eliminate the intended rate increases and instead use the funding to address the budget deficit. The Legislature has produced a plan that would not fund the targeted rate increases in 2025 and delay any MCO tax investments until 2026 at the earliest.