The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - We provide more background on rate reform in our 2024 report, The 2024‑25 Budget: Department of Developmental Services . Rate Reform Also Focused on Quality of Services and Outcomes. State statute (Chapter  76 of 2021 [A B  136 , Committee on Budget]) establishes legislative intent that rate reform implementation should help the developmental services system focus on outcomes.
https://lao.ca.gov/Publications/Report/5157

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - The current health plan tax, enacted in 2023 and expanded in 2024, generates more than three times the revenue of previous versions. This higher revenue level is essentially at the maximum of the current federal revenue limit.
https://lao.ca.gov/Publications/Report/5146

The 2025-26 California Spending Plan: Health

Oct 16, 2025 - (These savings are distinct from state operations budget solutions enacted as part of the 2024-25 Budget Act , which directed DOF to identify efficiencies to reduce state costs without diminishing service levels.)
https://lao.ca.gov/Publications/Report/5075

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - As a result, DHCS ultimately gave plans until the end of 2024, requiring retroactive provider payments in 2024. Nonetheless, we understand from stakeholders that some plans had not fully paid out their retroactive rates by the end of last year.
https://lao.ca.gov/Publications/Report/4992

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - Legislative Action in June 2024 Addressed Anticipated Budget Problem Proactively. In  June of 2024, the Legislature not only addressed the budget problem for 2024 ‑25, but also made proactive decisions to address the anticipated budget problem for 2025 ‑26.
https://lao.ca.gov/Publications/Report/4951

The 2025-26 Budget: Understanding Recent Increases in the Medi-Cal Senior Caseload

Mar 6, 2025 - Recent Trends in the Senior Caseload Senior Caseload Began to Increase More Sharply in January 2024. Figure  6 shows the cumulative percentage change for each category of Medi ‑Cal enrollees from April 2020 (when the continuous coverage period began) through December 2024 (a year and a half after the beginning of the unwinding of the continuous coverage requirement).
https://lao.ca.gov/Publications/Report/5010

The 2024-25 California Spending Plan: Health

Sep 17, 2024 - The 2023-24 budget delayed its end to 2024-25. Withdrawing the scheduled end of the deferral in 2024-25, thereby allowing it to continue, provides $5 33  million one-time General Fund savings in 2024-25.
https://lao.ca.gov/Publications/Report/4930

The 2025-26 Budget: Medi-Cal Fiscal Outlook

Nov 20, 2024 - The timing of the start of the wage increases had been uncertain, as they depended on certain trigger conditions adopted in trailer bill legislation as part of the 2024 ‑25 budget. The Department of Finance recently determined that one of the conditions had been met, triggering a start date of October 2024.
https://lao.ca.gov/Publications/Report/4941

The 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - Proposition  35 (2024) Limits Tax Rates, Necessitating a Proportionate Tax to Be Smaller. In concept, the state could adjust to H.R. 1 ’s new rule by decreasing the Medi ‑Cal rate, increasing the commercial rate, or a combination of the two actions.
https://lao.ca.gov/Publications/Report/5092

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

Oct 24, 2025 - They would do so by increasing premiums, which in 2024 averaged over $600 per month. The increase in premiums (around 5  percent, on average) could have a variety of effects. For enrollees with employer ‑sponsored coverage, much of the cost of higher premiums would fall on employers.
https://lao.ca.gov/Publications/Report/5083