Managed Care Organization Tax

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...

Governor’s May Budget Revise Proposes Significant Medi-Cal Coverage Changes, $50 Million for Distressed Hospitals

What’s happening: Today, Gov. Newsom released his May Revision budget proposal, which includes changes to Medi-Cal coverage along with spending cuts and revenue increases to address the long-term structural budget deficit. The proposal also includes $50 million to provide short-term support for distressed hospitals and commits to working with the Legislature on the issue.

Medicaid State-Directed Payments Help Ensure Patient Access to Care

About State-Directed Payments (SDPs) SDPs are additional payments made to health care providers to support Medicaid quality and access goals. The Centers for Medicare & Medicaid Services (CMS) reviews and approves SDPs for each 12-month rating period. Payments to providers are made via managed care organizations (MCOs) and are based on utilization of Medicaid services....