The 2025-26 Budget: Medi-Cal Pharmacy Spending

Apr 3, 2025 - Though initially enacted via executive order , Medi‑Cal Rx later became permanent in state law when voters enacted Proposition 34 (2024) . Net Spending on Drugs Driven by Two Key Components. Medi ‑Cal pharmacy spending generally consists of two key components: Gross Payment for Drugs and Pharmacy Services.
https://lao.ca.gov/Publications/Report/5026

Building California’s Behavioral Health Infrastructure: Progress Update and Opportunities for the Proposition 1 Bond

Feb 5, 2025 - The shortage of mental health services is more severe for young adults, with 34  percent of individuals aged 18 through 25 having a mental illness in 2021 ‑2022 and less than two ‑thirds of young adults with mental illness receiving services  in 2022.
https://lao.ca.gov/Publications/Report/4954

Overview of Proposition 1 and Assessment of Behavioral Health Continuum Infrastructure Program [Publication Details]

Apr 7, 2025 - Overview of Proposition 1 and Assessment of Behavioral Health Continuum Infrastructure Program [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/5027

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Proposition 52 (2016) made the private hospital fee permanent, while Proposition 35 (2024) made the health plan tax permanent. The two provider taxes are not permanent in federal law, however—periodic federal approval is still required to draw down federal funds.
https://lao.ca.gov/Publications/Report/5146

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

Oct 24, 2025 - How Proposition 52 Works Makes Private Hospital Fee Permanent. Similar to Proposition  35 (2024) and the health plan tax, Proposition  52 (2016) made a pre ‑existing fee on private hospitals (known as the Hospital Quality Assurance Fee) permanent in state law.
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 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 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - How Has Proposition  56 Impacted General Fund Spending? Enacted by voters in 2016, Proposition 56 increased taxes on tobacco-related products. The measure requires most of the resulting revenue to go to Medi-Cal.
https://lao.ca.gov/Publications/Report/4992

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

Feb 9, 2022 - The administration projects a substantial decline of roughly $170  million in Proposition  56 revenues between 2021 ‑22 and 2022 ‑23. Although Proposition  56 revenues are expected to gradually decline on a year ‑over ‑year basis, the administration ’s projected revenue decrease primarily is attributed to the anticipated implementation of Chapter  34 of 2020 (S B  793 ,  Hil  et. al) which bars retailers from selling flavored tobacco products.
https://lao.ca.gov/Publications/Report/4522

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