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California budget includes broader insurer tax to boost Medi-Cal funding
Modern Healthcare

The California health plans that would pay higher taxes on their managed-care plans to bolster funding for the state’s Medicaid program are still “crunching the numbers” on the controversial tax that was included in Gov. Jerry Brown’s budget released Thursday. The broader managed-care organization (MCO) tax would replace a narrower levy set to expire at the end of June. It only hit plans that participate in the state’s Medicaid managed-care program, better known as Medi-Cal. Less than half of health plans in the state operate Medicaid MCOs. The dozens of plans that don’t tend to be smaller players.