will result in a net tax cut, maintain more than $1 billion in critical federal funds, reduce debt by more than $400 million and direct approximately $300 million in new funding to help those with developmental disabilities. These bills will be signed as soon as they reach the Governor's desk."Democrats and Republicans came together today to do what's best for California," said Governor Brown. "This legislation will save money and help millions of people with health care and disability services."
Since 2005, the state's MCO financing structure has generated revenue from Medi-Cal managed care plans. This revenue has been matched by the federal government and used to pay for the Medi-Cal program, including increasing payments to Medi-Cal providers. However, in 2014, the federal government released guidance indicating that this structure would be impermissible under federal Medicaid regulations starting in 2016-17 - a shift that would result in the loss of more than $1 billion in federal funding.
To prevent the loss of federal funds and the resulting cuts to health care services in California, Governor Brown called a special session and the Administration has been working closely with the Legislature and other stakeholders on a solution.
Today's legislative package meets the federal government's new rules, thereby maintaining federal funds critical to funding health care services. The package also includes a $300 million increase in state funds to boost services for people with developmental disabilities and provides more than $400 million in debt relief by prefunding retiree health benefits and repaying transportation-related loans.
The legislation restructures the taxes assessed on the health insurance industry and is projected to reduce overall tax liability for the industry. In addition to being approved by more than two-thirds of the Legislature, this bipartisan legislation was supported by dozens of organizations including the California Association of Health Plans, California Chamber of Commerce, California Association of Health Facilities, Local Health Plans of California, California Hospital Association, Health Access California, Western Center on Law and Poverty and the Lanterman Coalition, including the Arc of California and the Association of Regional Center Agencies.
For full text of the bills, visit: http://leginfo.legislature.ca.gov
Source: Office of the Governor
February 29, 2016 - SACRAMENTO – Assemblymember Kristin Olsen (R-Modesto) issued a statement today following the passing of the Managed Care Organization (MCO) Financing Plan:
“The bipartisan MCO financing plan passed today is another example of the good work that can be done when elected officials put partisanship aside to do what’s right for Californians,” said Olsen. “These policies address some of California’s most pressing needs – cutting taxes, reducing state debt, helping the disabled, and improving access to healthcare in the San Joaquin Valley and across the State.”Assemblymember Kristin Olsen, R-Modesto, is recognized as a solution-focused reformer. She represents the 12th Assembly District in the California Legislature, which includes portions of Stanislaus and San Joaquin counties. Follow her on Twitter: @KristinOlsenCA
Source: Assemblymember Kristin Olsen
February 29, 2016 - SACRAMENTO – Senator Anthony Cannella (R-Ceres) today issued the following statement regarding the Legislature’s passage of a Managed Care Organization (MCO) financing package:
“Today, the California Legislature passed an important set of bills which will allow the state to bring in additional funding and increase health care services to many
Californians. The package received strong bipartisan support because it reduces the cost of health insurance for many Californians while bringing new federal dollars back to California for programs that serve our most vulnerable citizens.“Not only will this reform bring more than $1 billion in federal funding back to our state, but it also secures funding to improve services for the developmentally disabled and prevents the closure of skilled nursing facilities. In my district alone, there are more than 6,000 developmentally disabled residents that receive services. In addition, it provides additional funding to the San Joaquin Valley PRIME program through UC Merced. Our region is already struggling to meet the goals set forth by Covered California and access to care will only get worse in the years to come unless we invest in programs such as PRIME.”
Source: Senator Anthony Cannella
