DHCS Proposes Cutting Hospital Funding to Zero Under Revised MCO Spending Priorities
State Budget Redirects Prop 35 Funds, Sets New Medi-Cal Requirements
What’s happening: State lawmakers and Gov. Gavin Newsom this week reached a tentative agreement on the 2025-26 state budget, concluding weeks of negotiations.
Hospitals Urge State to Allocate Prop 35 Funding As Intended
What’s happening: Last week, CHA submitted comments to the Department of Health Care Services (DHCS) on the administration’s proposal to redirect Proposition (Prop) 35 (2024) funding, rather than allocating it for provider payment increases as voters intended.
Deadline Extended – Urge Lawmakers to Oppose Redirection of Prop 35 Funding
What’s happening: CHA has issued an alert asking members to contact their lawmakers by June 6 and urge them to protect Proposition 35 funding in the 2025-26 budget.
Managed Care Organization Tax
On Nov. 5, California voters overwhelmingly approved Proposition (Prop) 35, making an existing tax on managed care organizations (MCO) permanent under state law — and directing most of the revenues toward expanding access to care for Medi-Cal patients through improved provider reimbursement. Now, work by the state, hospitals, and others to determine how these funds...