Last mentioned: 22h ago
Assembly Republicans Send Letter to HHS
A group of California Assembly Republicans formally asks the federal Health and Human Services Secretary to intervene against the MCO tax, calling it a burden on families and a misuse of funds.
Federal Uniformity Mandate
In response to California's disparate tax rates, federal regulators require all states to impose uniform provider taxes if they seek federal Medicaid matching funds.
Proposition 35 Passes
Voters approve the ballot measure with 68% of the vote, making the MCO tax permanent and requiring revenues to fund Medi-Cal, healthcare workforce, and drug subsidies.
MCO Tax First Enacted
California introduces the Managed Care Organization tax on health insurance plans, initially with lower rates for private plans and higher for Medi-Cal.
California's MCO tax, under Proposition 35 passed with 68% voter approval, faces federal pressure to comply with uniformity rules. Assembly Republicans' letter to HHS signals a potential legal confrontation over Medicaid reimbursement and state taxing authority.
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