California health care providers are raising alarms about Gov. Gavin Newsom's budget. It cancels a Medi-Cal rate increase and repurposes money from the MCO tax on their services.
Get the news that matters to all Californians. Start every week informed.Gov. Gavin Newsom's plan to close the state deficit includes a significant cut to Medi-Cal and a repurposing of money from the so-called MCO tax that had been intended to increase payments to California health care providers. Here, patients visit Martin Luther King Jr. Community Hospital in Los Angeles on July 26, 2022. Photo by Pablo Unzueta for CalMattersGov.
“This is mind-boggling for the public, but really the story is about equality,” said John Baackes, chief executive of L.A. Care Health Plan, the largest publicly operated health plan in the country. Gov. Gavin Newsom addresses the media during a press conference unveiling his revised 2024-25 budget proposal at the Capitol Annex Swing Space in Sacramento on May 10, 2024. His proposal includes a change to the so-called MCO tax on California health care services. Photo by Fred Greaves for CalMatters
At that hearing, lawmakers who approved the tax deal last year accused the administration of not being honest about how the money would be used.
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