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 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 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - For the period spanning from January 1, 2025 through June  30,  2026, providers could earn the quality incentive portion of rate models by enrolling in DDS ’s Provider Directory. As a budget solution, the 2025 ‑26 Budget Act added three criteria that providers must satisfy to be eligible to earn a quality payment equal to 10   percent of the rate model beginning
https://lao.ca.gov/Publications/Report/5157

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

Oct 24, 2025 - The new requirement will only apply to childless adults earning more than 100  percent of the federal poverty limit. Certain services, such as primary care and behavioral health care, are excluded from the  requirement.
https://lao.ca.gov/Publications/Report/5083

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

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 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - 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 2025-26 California Spending Plan: Health

Oct 16, 2025 - To support the fund, the legislation allocates a portion of money from excess balances in health plans ’ special abortion accounts. Health plans that participate in Covered California must use these accounts so that federal subsidies do not pay for abortion services.
https://lao.ca.gov/Publications/Report/5075

The 2025-26 Budget: Medi-Cal Pharmacy Spending

Apr 3, 2025 - These rebates provide money back to the Medi ‑Cal program, effectively helping to offset some of the cost of the drugs. Most of the savings come from federally negotiated rebates. In addition, the state also negotiates supplemental rebates.
https://lao.ca.gov/Publications/Report/5026

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - This is because Proposition  35 ’s new rules in 2027 tend to direct larger portions of funds toward augmentations, leaving less money for offsetting General Fund spending in Medi-Cal. For example, were the MCO tax to generate about as much net revenue in 2027 as it does today, we estimate only around one-third of the net revenue (rather than more than half under the Governor ’s budget) would be available for the General Fund offset.
https://lao.ca.gov/Publications/Report/4992