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CA Legislature Approves Bills Taxing Health Plans

CA Legislature Approves Bills Taxing Health Plans

IMG_1453sizeYesterday a bipartisan coalition of California lawmakers approved the Managed Care Organization (MCO) tax.

The tax package will preserve more than $1 billion in crucial funds for MediCAL, which serves a third of the state’s population. The existing tax expires at the end of June and the debate over how to replace it has gone on for more than a year. The new bill also includes several hundred million dollars to pay for services for the developmentally disabled, debt relief and other programs.

There’s an estimated $306.5 million in new general fund money for the state’s system which served the nearly 300,000 Californians with developmental disabilities. The plan includes rate increases for the network of 21 nonprofit regional centers that contract with the state to arrange services, as well as the hundreds of agencies that provide them. The final deal includes tax offsets designed to minimize any hit to health plans that could be passed on to consumers. In addition, the deal provides more money to help people with autism and other developmental disabilities and forgives a budget debt owed by skilled-nursing facilities.

This is an important step in increasing services that many of our members and their loved ones rely on, such as: developmental disabilities programs, MediCAL, and additional funds to the state that will ensure we get the 7% restoration.


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