The 2024-25 Budget: Department of Developmental Services

Feb 13, 2024 - Under this plan, the final rate adjustment would occur in 2025 ‑26. The  original time line included the following steps: Year 1 (2021 ‑22). Service provider rates increase beginning April 1, 2022. Rate increases equal one ‑quarter of the difference between a provider ’s current rate and what the fully funded rate model (as of 2021 ‑22) would be according to the rate study.
https://lao.ca.gov/Publications/Report/4837

The 2023-24 Budget: Department of Developmental Services

Feb 15, 2023 - Additional Questions About Underlying Rate Models. In addition to concerns about the quality incentive program being developed, we have heard several concerns about the underlying rate models. For example, we have heard that the inputs used in some rate models may be inappropriate.
https://lao.ca.gov/Publications/Report/4683

The 2026-27 Budget: Department of Developmental Services [Publication Details]

Mar 13, 2026 - Analyzes the Governor’s budget for the Department of Developmental Services (DDS), with a focus on a budget proposal to continue planning the proposed Life Outcomes Improvement System (LOIS) information technology project, implementation of new H.R.
https://lao.ca.gov/Publications/Detail/5157

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - Now that rate reform is fully implemented, the administration estimates that the annual cost is about $3.5  billion total funds ($2.1  billion General Fund). State Minimum Wage Also Increases Rates. In addition to rate increases implemented under service provider rate reform, the statewide minimum wage also increases DDS rates.
https://lao.ca.gov/Publications/Report/5157

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - These payments will now be set at the comparable rate paid by Medicare, rather than the average rate paid by private health plans. This lower limit indirectly affects certain provider taxes, as some states —including California —use their provider taxes to help pay for these directed  payments.
https://lao.ca.gov/Publications/Report/5146

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

The 2021-22 Budget: Analysis of CalAIM Financing Issues

Feb 16, 2021 - Effects of Regional Rate Setting Regional Rate Setting Would Reduce DHCS Administrative Burdens. Currently, capitated rates generally are set on a plan ‑by ‑plan and county ‑by ‑county basis. Because capitated rates differ by enrollee population, plan, and county, DHCS and its contracted actuary annually have to develop thousands of distinct capitated rates.
https://lao.ca.gov/Publications/Report/4374

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

Oct 24, 2025 - This is because the state would have to significantly reduce tax rates to make the Medi ‑Cal and commercial tax rates proportional. The tax rate on Medi ‑Cal enrollment ($274 per member, per month in 2025) is more than 100 times the tax rate on commercial enrollment ($2 per member, per month in 2025).
https://lao.ca.gov/Publications/Report/5083

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

Feb 9, 2022 - Proposal Governor Proposes to Eliminate Rate Cuts for Certain Providers. The Governor ’s budget proposes $9  million General Fund ($20  million total funds) to eliminate these payment rate reductions for certain provider types among those still subject to the 2011 rate reductions.
https://lao.ca.gov/Publications/Report/4522

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - Public data on provider rates in the managed care system are not available, as these rates tend to reflect confidential negotiations between health plans and providers. Nonetheless, it is widely understood that the provider rate levels vary considerably by health plan, even for similar services.
https://lao.ca.gov/Publications/Report/4992