The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - CAC = California Arts Council; CalVet = California Department of Veterans Affairs; CDE = California Department of Education; CDFA = California Department of Food and Agriculture; CDI = California Department of Insurance; CDT = California Department of Technology; SOC = Security Operations Center; IT = information technology; CMD = California Military Department; CPUC = California Public Utilities
https://lao.ca.gov/Publications/Report/4432/6

Fiscal Outlook: Medi-Cal

Nov 14, 2018 - Expiration of Managed Care Organization (MCO) Tax Current MCO Tax. Since 2016-17, the state has imposed a per-member tax on Medi-Cal and non-Medi-Cal MCOs. Revenues from the MCO tax, which leverages federal funding for Medi-Cal, provide a substantial General Fund offset in Medi-Cal.
https://lao.ca.gov/Publications/Report/3898

The 2020-21 Budget: Overview of the Governor's Budget

Jan 13, 2020 - Recently, corporation tax collections have grown faster than anticipated while personal income tax collections have grown somewhat slower. The administration assumes that this pattern will continue. This is because they attribute the pattern to partnerships, which are taxed under the personal income tax, changing to corporations in response to 2017 federal tax changes.
https://lao.ca.gov/Publications/Report/4135

The 2019-20 May Revision: Governor's May Revision Medi-Cal Budget

May 14, 2019 - In combination with a package of associated tax  changes, the existing MCO tax package generates  a net General Fund benefit of around $1.5  billion. Under state law, the MCO tax package expires at the end of 2018 ‑19.
https://lao.ca.gov/Publications/Report/4046

The 2020-21 Spending Plan: Health Budget and Policy

Oct 15, 2020 - The 2020-21 Spending Plan: Health Budget and Policy ‑$252 ‑$2,114 a Original proposal refers to the MCO tax as reauthorized and proposed to the federal government for consideration in 2019. b The MCO tax is only authorized for a half year in 2022 ‑23. c Approved tax refers to the MCO tax as modified by the administration and approved by the federal government in April 2020.
https://lao.ca.gov/Publications/Report/4281

The MCO Tax: A Flat Versus Tiered Structure

Jul 20, 2015 - Some MCOs with higher tax rates could cede some of their market share to other MCOs with lower tax rates. A flat tax woul d not have this effect. Regardless of which tax structure is in place, there are signs that the MCO industry is already moving toward greater consolidation.
https://lao.ca.gov/Publications/Report/3292

The 2020-21 Spending Plan: Health Budget and Policy [Publication Details]

Oct 15, 2020 - These actions include the offsetting of what would otherwise be General Fund costs with (1) revenues from the federally approved reauthorized tax on managed care organizations and (2) federal Medicaid funds that are being provided to the state at an enhanced level during the term of the public health emergency.
https://lao.ca.gov/Publications/Detail/4281

The Uncertain Affordable Care Act Landscape: What It Means for California

Feb 17, 2017 - To encourage the use of HSAs, some Republican replacement proposals offer tax credits to individuals for contributions into an HSA. (The tax credit could either be some portion of the alternative health care tax credit discussed above or a separate tax credit.)
https://lao.ca.gov/Publications/Report/3569

The 2021-22 Budget: Medi-Cal Fiscal Outlook

Nov 18, 2020 - Assume Statutorily Scheduled Expiration of Managed Care Organization (MCO) Tax For a number of years, the state has imposed a tax on MCOs ’ Medi ‑Cal and commercial lines of business. The state ’s previous MCO tax expired at the end of 2018 ‑19 and, in 2019 ‑20, the Legislature reauthorized the MCO tax in similar but not identical form to the prior tax.
https://lao.ca.gov/Publications/Report/4299

Fiscal Outlook: In-Home Supportive Services (IHSS)

Nov 14, 2018 - Since 2016 ‑17, the General Fund has supported the restoration of IHSS service hours, which were previously reduced by 7  percent, so long as the MCO tax is in place. Under current law, the MCO tax is set to expire at the end of 2018 ‑19.
https://lao.ca.gov/Publications/Report/3899