The 2026-27 Budget: Medi-Cal Fiscal Outlook

Nov 19, 2025 - Under H.R. 1, this limit will be gradually reduced beginning in Federal Fiscal Year 2028, reaching 3.5  percent by Federal Fiscal Year 2032. Our understanding is that California ’s hospital fee, which is pending federal approval for 2025, is at around 5  percent.
https://lao.ca.gov/Publications/Report/5092

The 2023-24 California Spending Plan: Health

Oct 23, 2023 - The program is set to sunset in January 2032. In addition to creating this program, the early action legislation enhances existing hospital financial reporting requirements to HCAI to better identify which hospitals are experiencing financial distress.
https://lao.ca.gov/Publications/Report/4810

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

Oct 24, 2025 - Beginning in Federal Fiscal Year 2028, this limit will decline gradually over time until reaching 3.5  percent in Federal Fiscal Year 2032. This 3.5  percent requirement only applies to states that expanded Medicaid coverage to childless adults as part of the ACA (such as California).
https://lao.ca.gov/Publications/Report/5083

The 2025-26 California Spending Plan: Health

Oct 16, 2025 - The August session trailer bill (Chapter  105 of 2025 [AB  144, Committee on Budget]) modifies state law ’s requirements around federal vaccine guidance. Whereas previous law generally required providers, schools, and other groups to follow current federal recommendations, the legislation creates a new baseline.
https://lao.ca.gov/Publications/Report/5075

The 2024-25 California Spending Plan: Health

Sep 17, 2024 - Trailer bill legislation enacted in August 2024 (Chapter 999 of 2024 [AB  177, Committee on Budget]) creates a new directed payment methodology for MLK Hospital. The new methodology is to ensure that the hospital ’s aggregate managed care payment for inpatient services is at least 72  percent of projected costs.
https://lao.ca.gov/Publications/Report/4930

Mental Health Services Act: Proposed Bond to Fund Behavioral Health Facilities and Veterans Housing

Aug 17, 2023 - Most relevant to AB  531, the proposals include $25  billion for home ownership and construction (SB  834 [Portantino]), $10  billion for affordable rental housing and home ownership programs (AB  1657 [Wicks]), and $5.2  billion for substance use treatment and other behavioral health programs (AB  1510 [Jones-Sawyer]).
https://lao.ca.gov/Publications/Report/4790

The 2022-23 California Spending Plan: Health

Oct 24, 2022 - Eliminate Certain AB  97 Provider Rate Reductions. The spending plan includes $9  million General Fund ($19.6  million total funds) to eliminate certain provider rate reductions (commonly referred to as the “AB  97 provider rate reductions ”), including those for nurses, chronic dialysis clinics, respiratory care providers, blood banks, psychologists, and various others.
https://lao.ca.gov/Publications/Report/4642

The 2024-25 Budget: Department of Health Care Access and Information

Feb 27, 2024 - As part of early action trailer bill legislation (Chapter  6 of 2023 [AB  112, Committee on Budget]), the Legislature created the Distressed Hospital Loan Program. The program provides interest-free loans to public and private nonprofit hospitals experiencing financial distress.
https://lao.ca.gov/Publications/Report/4860

The 2023-24 Budget: Assessment of Covered California Budget Solution

Feb 13, 2023 - As part of the 2021 ‑22 budget package, Chapter  143 of 2021 (AB  133, Committee on Budget) moved $333.4  million of this freed-up General Fund to the Health Care Affordability Reserve Fund (HCARF) to support future affordability efforts in Covered California.
https://lao.ca.gov/Publications/Report/4681

Mental Health Services Act: Impact of Governor's Proposal on Funding for Children and Youth

Aug 10, 2023 - The Governor’s proposal is reflected in (1) SB 326 (Eggman), as amended on July 13, 2023, which would make far-reaching changes to the Mental Health Services Act (MHSA), and (2) AB 531 (Irwin), as amended June 19, 2023, which proposes a $4.7 billion bond for behavioral health facilities and housing for veterans.
https://lao.ca.gov/Publications/Report/4786