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.
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...