Managed Care Organization Tax - DHCS

Jun 30, 2024 · Most recently, Assembly Bill 119 (Chapter 13, Statutes of 2023) authorized a Managed Care Organization (MCO) Tax effective April 1, 2023, through December 31, 2026. …

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State Requests Federal Waiver For Managed Care Organization Tax

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Oct 9, 2024 · The waiver was the next step in a plan state lawmakers approved in the budget this year to fill health spending gaps after legislators opposed Gov. Kathy Hochul’s $1.2 billion …

crainsnewyork.com

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New York Lawmakers Eye Managed Care Tax To Raise $4 Billion

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Letter. The New York Legislature is considering a tax on managed care organizations to generate $4 billion in new revenue, but regulatory challenges could jeopardize the funding stream in the …

nysblues.org

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California Wins Federal OK For $19.4 Billion Managed Care Tax

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Jan 5, 2024 · California has federal approval to reinstate a tax on managed health care organizations that will generate $19.4 billion over three years to increase funding for Medicaid …

bloombergtax.com

FAQs about Managed Care Organization Tax - DHCS Coupon?

What is a Managed Care Organization (MCO) tax?

Most recently, Assembly Bill 119 (Chapter 13, Statutes of 2023) authorized a Managed Care Organization (MCO) Tax effective April 1, 2023, through December 31, 2026. MCO tax revenues will be used to support the Medi-Cal program, similar to the prior version of California's MCO tax. ...

Will DHCS implement the MCO tax?

Today the Center for Medicare & Medicaid Services (CMS) approved the MCO Tax federal waiver, paving the way for DHCS to move forward with implementing the MCO Tax for the authorized effective period, subject to any future changes in federal requirements concerning health care-related taxes. ...

What does California's Assembly Bill 115 mean for managed care organizations (MCOs)?

California’s Assembly Bill 115 enacts a new Managed Care Organization (MCO) tax, effective for a taxing period of July 1, 2019, through December 31, 2022. The California Department of Health Care Services (California) submits this letter requesting a waiver of the broad-based and uniformity provisions, pursuant to 42 CFR §433.72. ...

Can a state hold MCO taxpayers harmless?

There is no direct or indirect guarantee by the state to hold MCO taxpayers harmless for all or any portion of the tax amount, and the aggregate revenue from the tax will not exceed six percent of MCO revenues projected for the taxing period. ...

How much will MCO tax revenues Support Provider payment increases?

Annually, almost $2.7 billion in MCO tax revenues will support provider payment increases. When including the federal Medicaid match funds (that will be sought for most of the provider payment increases), we expect hospitals to receive $1.7 billion annually beginning in 2025. ...

Should MCOs be taxed on Medi-Cal enrollment?

By placing higher tax rates on MCOs’ Medi-Cal enrollment — which is federally required to be built into Medi-Cal health plan capitation rates, as opposed to commercial enrollment — the tax raises substantial revenue without significantly negatively impacting the commercial premiums Californians pay. ...