In June of 2022, L.A. Care Health Plan CEO John Baackes led a discussion on how we as an ecosystem of doctors, hospitals, clinics, and health plans could tackle the long-neglected level of reimbursement in Medi-Cal. Fifteen months later, Governor Gavin Newsom signed into law a budget for 2023-2024 that provides the first increase in Medi-Cal funding in 25 years using a resurrected MCO (Manage Care Organization) tax, which was championed by a statewide coalition that grew out of that first meeting.
Last week, LACMA board member Dr. Hector Flores and I attended a meeting to discuss:
An update on the details of the MCO tax signed into law and how the $11 billion in revenue generated by the tax with be allocated.
Plans for a statewide ballot initiative in November 2024 to make this tax and its proceeds for the benefit of Medi-Cal provider reimbursement permanent and not subject to the annual budget process.
Jim DeBoo, former Chief of Staff to Governor Newsom and Advisor to the Statewide Coalition provided an in-depth update. Let me know if you would like to learn more.