The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Rather, the lower revenues are due to the interaction of H.R.  1 ’s new proportionality rules with Proposition  35 ’s limit on taxing commercial enrollment. As we noted in our recent report Considering Medi‑Cal in the Midst of the Changing Fiscal and Policy Landscape , the state likely could amend Proposition 35 with a three‑fourths vote in each house, so long as the changes are consistent with the purpose and intent of the measure.
https://lao.ca.gov/Publications/Report/5146

Considering Medi-Cal in the Midst of a Changing Fiscal and Policy Landscape

Oct 24, 2025 - Proposition  35, however, limits the size of the tax on commercial enrollment to nominal amounts. (The box below provides more information on Proposition  35 ’s interaction with federal rules.) As a result, the health plan tax under H.R.  1 likely will raise tens of millions of dollars annually, rather than the billions of dollars it currently  generates.
https://lao.ca.gov/Publications/Report/5083

The 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - General Fund Backfill Needed Due to Proposition   35 (2024). Our baseline outlook also projects costs to rise due to Proposition  35. The measure made a longstanding provider tax on health plans (known as the Managed Care Organization [MCO] Tax) permanent in state law.
https://lao.ca.gov/Publications/Report/5092

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - Assessment and Recommendations for Legislative Oversight While Limited in Detail, Administration ’s Approach to Proposition  35 Appears Reasonable. At the moment, the administration does not have a complete Proposition  35 implementation plan to assess.
https://lao.ca.gov/Publications/Report/4992

The 2025-26 Budget: Medi-Cal Fiscal Outlook

Nov 20, 2024 - Under current law, previously planned MCO tax-supported augmentations cannot go into effect if voters pass Proposition  35. Instead, Proposition  35 will determine which services and areas receive increased funding.
https://lao.ca.gov/Publications/Report/4941

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - This federal HCBS funding has historically supported about 35  percent to 45  percent of total costs in DDS. Of the DDS consumers enrolled in Medi ‑Cal, the majority (about 60  percent based on the most recent available data) qualify automatically because they receive Supplemental Security Income/State Supplementary Payment (SSI/SSP).
https://lao.ca.gov/Publications/Report/5157

The 2025-26 California Spending Plan: Health

Oct 16, 2025 - As Figure  6 shows, the largest activity supported by the Proposition  35 spending plan is underlying growth in managed care costs. According to DHCS, managed care plans have increased rates for certain services (such as primary care) in the last few years.
https://lao.ca.gov/Publications/Report/5075

The 2023-24 Budget: Whole Child Model Expansion

May 5, 2023 - For children in CHIP, the federal government historically has covered 65  percent of costs and the remaining 35  percent has been shared equally between state General Fund and county funds. The state supports CCS services provided to children who are not enrolled in Medi-Cal primarily through a mix of state General Fund and county funds.
https://lao.ca.gov/Publications/Report/4767

An Update on the Public Health Laboratory System After the Pandemic

Jun 12, 2025 - Since the passage of the 2022-23 budget, there have been 58 graduates of this program. In the Governor ’s proposed May Revision, approximately $3.4  million for these programs is proposed for reversion.
https://lao.ca.gov/Publications/Report/5056

The 2025-26 Budget: Health Care Access and Information

Feb 20, 2025 - Moreover, as part of recent federal legislation, Medicare out ‑of ‑pocket costs for insulin are capped at $35, just slightly higher than the $30 cost per vial intended for the CalRx product. These  developments could limit the potential savings effect of CalRx.
https://lao.ca.gov/Publications/Report/4979