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....
CHA Urges State to Leverage MCO Funds to Support Directed Payments, Ensure Compliance with Prop. 35 Provisions
What’s happening: Following this month’s release of the 2025-26 spending plan for managed care organization (MCO) tax proceeds generated under Proposition 35 (2024), CHA has submitted recommendations to Department of Health Care Services (DHCS) Director Michelle Baass.
Prop 35 Advisory Committee Presents Revised 2025-26 Spending Plan at January Meeting
What’s happening: At its Jan. 14 meeting, the Proposition 35 Protect Access to Health Care Act Stakeholder Advisory Committee was presented a revised spending plan for calendar years 2025 and 2026. The spending plan reflects investments supported by managed care organization (MCO) tax proceeds generated from taxes imposed on Medi-Cal managed care plans.
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...