The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Proposal Assumes Current Version of Health Plan Tax Expires at End of 2026 … The Governor ’s budget assumes the current structure of the health plan tax remains in effect through the end of December  2026.
https://lao.ca.gov/Publications/Report/5146

The 2025-26 California Spending Plan: Health

Oct 16, 2025 - The spending plan ends coverage of certain optional pharmacy benefits in Medi-Cal, beginning January 2026. Most notably, the administration plans to end coverage of Glucagon-Like Peptide-1 (GLP-1) agonists used to treat obesity (such as Wegovy).
https://lao.ca.gov/Publications/Report/5075

The 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - Savings Are Partially Offset by End of Limited ‑Term Solutions. The ongoing multiyear savings are partially offset by the end of limited ‑term solutions ($4  billion). Most of this effect comes from a substantial one ‑time cash loan to Medi ‑Cal that helps offset costs in 2025 ‑26.
https://lao.ca.gov/Publications/Report/5092

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

Feb 10, 2023 - PHE Ends in May 2023. The federal government recently announced intent to end the PHE on May 11, 2023. While the continuous coverage requirement and enhanced federal funding no longer will be impacted by the end date of the PHE, certain COVID ‑19 ‑related policies such as revised reimbursement rates for certain behavioral health services will be impacted by the end date of the PHE.
https://lao.ca.gov/Publications/Report/4675

The 2024-25 Budget: Medi-Cal Fiscal Outlook

Dec 7, 2023 - Assumes End of General Fund Savings From MCO Tax. The recently enacted MCO tax is scheduled to expire at the end of the 2026 calendar year. As a result, the amount of tax revenue available for offsetting General Fund spending ramps down in 2025-26 and fully ends in 2026-27, necessitating corresponding increases in General Fund spending.
https://lao.ca.gov/Publications/Report/4820

The 2024-25 Budget: The MCO Tax Package at May Revision

May 22, 2024 - Some money would remain in the reserve after this version of the MCO tax ends in 2026 to help sustain the augmentations in the future. This year ’s early action shifted $3.1  billion out of the reserve to help address the budget problem.
https://lao.ca.gov/Publications/Report/4905

The 2023-24 Budget: Medi-Cal Fiscal Outlook

Nov 16, 2022 - The current MCO tax has been in place since January 2020 and is scheduled under current law to end in December 2022. We project the end of this tax will increase General Fund spending by $1.5 billion in 2023‑24.
https://lao.ca.gov/Publications/Report/4649

Issues That Could Impact Californians' Health Care Coverage in 2023 and Beyond

Dec 16, 2022 - Medi ‑Cal Eligibility Redeterminations Will Resume After PHE Ends Once the PHE ends, the continuous coverage requirement will expire and counties will have 14  months to redetermine the eligibility of all Medi ‑Cal enrollees.
https://lao.ca.gov/Publications/Report/4654