The 2024-25 Budget: Department of Health Care Access and Information

Feb 27, 2024 - MCO Tax Package Augmented Support for Hospital Relief Programs. As noted in the “Health Care Workforce Proposals ” section of this post, last year ’s budget enacted a multiyear plan for the MCO tax. As part of this plan, the Legislature designated $200  million one-time MCO tax funds for HCAI hospital relief programs in 2023 ‑24.
https://lao.ca.gov/Publications/Report/4860

The 2024-25 Budget: Medi-Cal Fiscal Outlook

Dec 7, 2023 - A few of these solutions are in Medi-Cal, including a renewed tax on health insurance plans (described below). Budget Also Renewed the MCO Tax. The 2023-24 budget package renews a state tax on enrollment in health insurance plans known as the MCO tax, with the tax extending through the end of December 2026.
https://lao.ca.gov/Publications/Report/4820

The 2024-25 California Spending Plan: Health

Sep 17, 2024 - The CCR is funded primarily by federal funds and Proposition  99 tobacco tax revenues, the latter of which has been declining in recent years. The spending plan includes $800,000 of one-time funding in 2024-25 and $2  million ongoing General Fund to support CCR and maintain data system integrity.
https://lao.ca.gov/Publications/Report/4930

Mental Health Services Act: Revenue Volatility and the Governor’s Proposal to Reduce Allowable County Reserves

Jul 13, 2023 - This approach, however, would increase the number of tax filers paying the MHSA tax. Swap MHSA Tax for Portion of SUT. Another way to fundamentally address MHSA revenue volatility would be to transfer the MHSA tax that is collected to the state General Fund and shift a dedicated portion of the General Fund tax base to fund the MHSA.
https://lao.ca.gov/Publications/Report/4780

The 2023-24 California Spending Plan: Health

Oct 23, 2023 - If the federal government does not initially approve the MCO tax, the trailer bill legislation grants the administration authority to adjust the structure of the tax as needed to meet federal rules and to resubmit the tax for federal approval.
https://lao.ca.gov/Publications/Report/4810

The 2024-25 Budget: Medi-Cal Fiscal Outlook [Publication Details]

Dec 7, 2023 - This post provides our annual fiscal outlook for General Fund spending in Medi-Cal. It summarizes our projections, describes the major factors driving our projections, and highlights key uncertainties.
https://lao.ca.gov/Publications/Detail/4820

Managed Care Organization Tax: Background and Issues for Consideration on Administration’s Proposal [Publication Details]

May 30, 2023 - Managed Care Organization Tax: Background and Issues for Consideration on Administration’s Proposal [Publication Details] Translate Our Website This Google ™ translation feature provided on the Legislative Analyst's Office (LAO) website is for informational purposes only.
https://lao.ca.gov/Publications/Detail/4774

The 2023-24 Budget: Analysis of the Medi-Cal Budget

Feb 10, 2023 - New MCO Tax Proposal. The Governor proposes implementing a new MCO tax from January 2024 through December 2026. Similar to previous versions of the tax, a portion of the resulting revenues would help offset Medi ‑Cal General Fund costs.
https://lao.ca.gov/Publications/Report/4675

The 2023-24 Budget: Analysis of the Medi-Cal Budget [Publication Details]

Feb 10, 2023 - The 2023-24 Budget: Analysis of the Medi-Cal Budget [Publication Details] Description: This brief provides an overview of the Governor’s proposed budget for Medi-Cal, assesses the administration’s assumptions on caseload and COVID-19-related policies, and analyzes the Governor’s managed care organization tax proposal.
https://lao.ca.gov/Publications/Detail/4675

The 2022-23 Budget: Analysis of the Medi-Cal Budget

Feb 9, 2022 - The current MCO tax has been in place since January  2020 and generates an annual net General Fund benefit of over $1.5  billion. While early versions of the MCO tax taxed MCOs  based on their revenues, the recent versions of the MCO  tax have taxed MCOs based on their enrollment.
https://lao.ca.gov/Publications/Report/4522