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 […]
Prop 35 Passage Kickstarts Work to Develop, Implement Methodologies to Distribute Funding
What’s happening: 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 should be distributed begins.
What else to know: While Prop 35 specifies how much funding shall go to several different service categories, it does not set the methodologies for distributing the funds. The ball is now in the Department of Health Care Services’ court to develop these payment methodologies — in consultation with hospitals and other providers, including through a dedicated stakeholder advisory committee.
YES on 35!
Last week, California’s Secretary of State officially designated Proposition (Prop) 35 as the title for the “Protect Our Health Care” initiative, a CHA-sponsored ballot measure to strengthen Medi-Cal.
State Policymakers Reach a Budget Agreement with Major Implications for Hospitals
What’s happening: This week, the 2024-25 budget and supporting legislation will be signed by the governor, ensuring the spending plan is in place by July 1, the start of the fiscal year.
What else to know: The budget includes important changes to the managed care organization (MCO) tax and the health care worker minimum wage, while also having implications for the hospital fee program.