Provides Permanent Funding for Medi-Cal Health Care Services
initiative statute
Official Summary
Makes permanent the existing tax on managed health care insurance plans, which, if approved by the federal government, provides revenues to pay for Medi-Cal health care services.
Fiscal Impact: Short-term state costs between roughly $1 billion and $2 billion annually to increase funding for certain health programs. Total funding increase between roughly $2 billion to $5 billion annually. Unknown long-term fiscal effects.
support: $53,734,990 - Planned Parenthood Affiliates of CA; American College of Obstetricians & Gynecologists; American Academy of Pediatrics, CA
oppose: $0 - none
Notes
Expiring in 2026, there is currently a Managed Care Organization Provider Tax on certain health plans, resulting in $7 to $8 billion each year used for existing costs in the Medi-Cal program and increasing funding for Medi-Cal and other health programs.
This proposition makes the tax permanent, pending federal approval.
There are some changes to what expenses are eligible for increases. Currently eligible but would become ineligible: nonemergency medical transportation, private duty nursing, certain long term supports, continuous Medi-Cal coverage for children up to 5 yrs old. And currently ineligible but would become eligible: specified hospital services, outpatient facilities, behavioral health facilities, doctor postgraduate training programs.