California AB125 establishes a managed care organization provider tax to fund Medi-Cal.

California AB125 creates a managed care organization provider tax to generate funds for Medi-Cal, aiming to maintain and improve access to care and reimbursement levels. The tax applies to health plans and is set at $8.85 per countable enrollee per month for the 2027, 2028, and 2029 calendar years. The State Department of Health Care Services will collect the tax, which will be deposited into the Medi-Cal Stability Fund. The bill also mandates increased reimbursement rates for certain services and requires federal approval for the tax.

California AB125 establishes a managed care organization provider tax to fund Medi-Cal.

California AB125 creates a managed care organization provider tax to generate funds for Medi-Cal, aiming to maintain and improve access to care and reimbursement levels. The tax applies to health plans and is set at $8.85 per countable enrollee per month for the 2027, 2028, and 2029 calendar years. The State Department of Health Care Services will collect the tax, which will be deposited into the Medi-Cal Stability Fund. The bill also mandates increased reimbursement rates for certain services and requires federal approval for the tax.