The 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - Effects of Federal Policy  Changes General Fund Backfill Needed Due to Lower Health Plan Tax … Four key factors drive the net increase in spending from H.R. 1 policies ($5  billion). The largest factor ($3.3  billion over the multiyear) is a sizable reduction to the state tax on health plans.
https://lao.ca.gov/Publications/Report/5092

The 2026-27 Budget: Department of Developmental Services

Mar 13, 2026 - Four Key Factors Drive Spending in DDS. As discussed in the analysis that follows, the Lanterman Act, due to its foundational role, influences all cost drivers in the developmental services system. These cost drivers (similar to other health and human services programs) include caseload, available services, utilization of services, and the rates paid for services.
https://lao.ca.gov/Publications/Report/5157

The 2026-27 Budget: Medi-Cal Analysis

Mar 2, 2026 - The administration stated that increasing Medi ‑Cal costs were due to several factors, including increased utilization of high ‑cost anti ‑obesity drugs, increased enrollment of seniors and persons with disabilities following the elimination of the state ’s asset test, and the higher than anticipated costs associated with the state ’s expansion of full ‑scope Medi ‑Cal coverage to all individuals regardless of immigration status.
https://lao.ca.gov/Publications/Report/5146

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

Mar 6, 2025 - Three Key Factors May Be Limiting Utilization Statewide. Utilization of the ECM and Community Supports benefits appears to be lower than expected. Based on our analysis and conversations with MCPs and providers, we identify three key factors that appear to be driving lower utilization rates across the state.
https://lao.ca.gov/Publications/Report/5003

The 2025-26 Budget: Medi-Cal Pharmacy Spending

Apr 3, 2025 - A few factors seem to be behind this trend. Most importantly, utilization appears to have declined somewhat. More recently, some of the largest makers of insulin notably reduced prices, yielding declines in average cost.
https://lao.ca.gov/Publications/Report/5026

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

Oct 24, 2025 - State  costs or savings, expected Medi ‑Cal disenrollments, and administrative capacity will be key factors to consider when weighing each option. For example, the Legislature may want to work with the administration and counties to understand the administrative feasibility of tracking Medi ‑Cal member incomes for compliance with the community engagement  requirement.
https://lao.ca.gov/Publications/Report/5083

The 2025-26 Budget: Medi-Cal Fiscal Outlook

Nov 20, 2024 - This heightened uncertainty stems from a number of factors, including pending details of the MCO tax implementation, developing trends in the senior caseload, and a new state health care minimum wage policy.
https://lao.ca.gov/Publications/Report/4941

The 2025-26 Budget: Health Care Access and Information

Feb 20, 2025 - For example, in a 2023 report to the Legislature , HCAI projected commercial health plans could save 43 percent on per‑enrollee spending on insulin glargine as a result of the new product, even after factoring rebates.
https://lao.ca.gov/Publications/Report/4979

The 2024-25 Budget: Future of Public Health Budget Solution

May 21, 2024 - In considering an amount of funding to maintain, the Legislature could consider, for example, such factors as whether the funding serves to advance legislative priorities (such as the reduction of health disparities) and whether it would minimize disruption to already hired public health workforce.
https://lao.ca.gov/Publications/Report/4904

The 2025-26 Budget: MCO Tax and Proposition 35

Feb 26, 2025 - The pressure to the General Fund could be even greater depending on other factors (described more in the remaining paragraphs). At the same time, as we have noted in other publications , the General Fund is projected to have structural deficits in the future, leaving limited capacity to absorb new costs.
https://lao.ca.gov/Publications/Report/4992