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Funding & Budget

California's budget keeps state-only FQHC PPS and adult dental through June 2027

CaliforniaMore from California

Issue

California's budget, the health plan (MCO) tax and Proposition 35Taking effect

Next: · California's current MCO tax reaches the end of its authorized term

Also in: California's state-only Medi-Cal coverage

DHCS says California's enacted 2026-27 budget moves defined immigrant members to fee-for-service on January 1, 2027. On July 1, 2027, the state-only FQHC and RHC shift away from PPS, the adult dental cut and a $30 monthly premium for defined adults 19 to 59 begin.

A possible rise to $50 depends on the 2027-28 May Revision.

Key points

  • PPS billing continues until DHCS gives notice, and statewide savings from the July 1, 2027 change do not equal a loss at your center.
  • Eligibility and care teams: keep January FFS, July dental, July PPS, and July premium scripts separate; verify the member's category and notice before giving individual guidance.
  • Tell members the published July 2027 premium is $30, since the possible $50 amount depends on a future May Revision.

Sources for this story

California Department of Health Care Services — enacted 2026–27 Budget Act highlights

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Cite this analysis

FQHC Talent. (2026, June 29). California's budget keeps state-only FQHC PPS and adult dental through June 2027. Source: California Department of Health Care Services — enacted 2026–27 Budget Act highlights. Retrieved November 11, 2026, from https://www.fqhctalent.com/intel/ca-budget-agreement-june-11-community-health-2026