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

May 22, 2024 - To the extent the Legislature pursues certain rate augmentations, dollar-for-dollar reductions in other areas of the budget would be required. Background MCO Tax State Has Renewed and Increased the MCO Tax.
https://lao.ca.gov/Publications/Report/4905

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

Oct 24, 2025 - 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. How Proposition 35 Interacts With Federal Law Makes Tax Permanent, Conditioned on Federal Approval.
https://lao.ca.gov/Publications/Report/5083

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - The department has stated that its goal is to have as many providers as possible earn the quality payments, but it has not yet discussed how it might approach circumstances in which providers do not achieve them.
https://lao.ca.gov/Publications/Report/5157

The 2025-26 Budget: Medi-Cal Fiscal Outlook

Nov 20, 2024 - This is because the measure requires the state to use more MCO tax money to increase Medi-Cal services, rather than to offset General Fund spending. The exact fiscal impact depends on how the state implements the measure ’s complex rules.
https://lao.ca.gov/Publications/Report/4941

The 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - Keeping these factors in mind, our outlook r eflects a decline in the private hospital fee, with annual revenue falling from nearly $10  billion to several billion dollars. Pursuant to state law, most of the decline in revenue will affect supplemental payments to private hospitals, with only a portion (around 25  percent) resulting in less money for existing Medi ‑Cal costs.
https://lao.ca.gov/Publications/Report/5092

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - Individuals must generally work, study, or volunteer at least 80  hours per month, or meet an earnings threshold (about $580 per month, equivalent to 80 hours at the federal minimum wage) unless they qualify for certain exemptions (such as having young children or being medically frail).
https://lao.ca.gov/Publications/Report/5146

The 2024-25 Budget: Department of Developmental Services

Feb 13, 2024 - Rejecting the administration ’s proposal, however, requires dollar ‑for ‑dollar reductions in other areas of the budget. Alternatively, the Legislature could consider a scaled ‑back budget solution that allows some level of funding for the final phase of rate reform in 2024 ‑25 while reducing the adverse impacts associated with the proposed solution.
https://lao.ca.gov/Publications/Report/4837

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - For example , some directed payments require plans to increase their provider rates by a uniform dollar amount, regardless of the size of their base payments to providers. Such an approach is likely inefficient and arbitrary, as plans that pay considerably more for services (arguably already providing a more adequate payment) get the same boost in rates as a plan with notably lower payment s.
https://lao.ca.gov/Publications/Report/4992

The 2021-22 Budget: Initial Comments on the Governor’s May Revision

May 17, 2021 - This relatively small number obscures many billions of dollars in budgetary changes. For example, relative to the Governor ’s budget, the Legislature enacted about $6.4  billion in spending increases and revenue reductions through early action.
https://lao.ca.gov/Publications/Report/4432

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

Jan 13, 2025 - The reason for the reduction is the recent voter approval of Proposition  35 (2024), which requires the state to spend less MCO tax money on offsetting General Fund spending and more money on provider rate increases.
https://lao.ca.gov/Publications/Report/4951