The 2025-26 Budget: Medi-Cal Pharmacy Spending

Apr 3, 2025 - After paying pharmacies for the drugs, Medi ‑Cal submits claims to drug makers for negotiated rebates. These rebates provide money back to the Medi ‑Cal program, effectively helping to offset some of the cost of the drugs.
https://lao.ca.gov/Publications/Report/5026

The 2025-26 Budget: Health Care Access and Information

Feb 20, 2025 - One key issue is rebates —negotiated discounts that drug makers pay to health plans after drugs are purchased. Rebates help health plans mitigate the high cost of drugs, and brand drugs likely come with higher rebates than generic drugs.
https://lao.ca.gov/Publications/Report/4979

The 2025-26 Budget: Understanding Recent Increases in the Medi-Cal Senior Caseload

Mar 6, 2025 - Prior to December 2020, seniors and persons with disabilities whose incomes were between roughly 122  percent and 138  percent of the FPL had to pay a share of cost in order to receive Medi ‑Cal coverage.
https://lao.ca.gov/Publications/Report/5010

The 2025-26 Budget: CalAIM Enhanced Care Management and Community Supports Implementation Update

Mar 6, 2025 - In order to support the implementation of ECM and Community Supports, the state implemented the PATH initiative and the Incentive Payment Program (IPP) to help create and expand program infrastructure.
https://lao.ca.gov/Publications/Report/5003

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - For example, some health plans use fee-for-service approaches to pay for services. Others enter into managed care contracts with certain providers, paying monthly rates in exchange for overseeing the care of beneficiaries.
https://lao.ca.gov/Publications/Report/4992

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

May 22, 2024 - Historically, the state has used the MCO tax to help pay for existing services in Medi-Cal. Using the tax in this way allowed the state to spend less money from the General Fund on Medi-Cal. When the Legislature notably increased the tax in 2023, however, it designated some of the associated revenue to increase funding for Medi-Cal and other health programs.
https://lao.ca.gov/Publications/Report/4905

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

Feb 5, 2025 - This report assesses $1.8 billion in behavioral health infrastructure grants awarded in 2022 and 2023 to help the Legislature conduct oversight over $4.4 billion in additional grants funded by the Proposition 1 bond expected to be awarded beginning May 2025.
https://lao.ca.gov/Publications/Detail/4954

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

Feb 5, 2025 - The Behavioral Health Continuum Infrastructure Program (BHCIP) was created in the 2021 budget to help address the shortage of services. So far, BHCIP has awarded $1.8 billion in grants to build facilities meant to expand mental health and substance use disorder (SUD) treatment in California.
https://lao.ca.gov/Publications/Report/4954

The 2024-25 Budget: Medi-Cal Analysis

Feb 14, 2024 - For example, the Legislature could consider tying certain provider payments to a percent of the Medicare level, as proposed, which would help to mitigate existing inequities and allow for a consistent approach to adjust rates over time.
https://lao.ca.gov/Publications/Report/4838

The 2024-25 Budget: Department of Developmental Services

Feb 13, 2024 - Regional Centers Coordinate and Pay for Individuals ’ Services. DDS contracts with 21  nonprofit regional centers, which coordinate and pay for the direct services provided to “consumers ” (the term used in statute).
https://lao.ca.gov/Publications/Report/4837