California budget talks stalled over MCO tax and a new employer fee
Issue
On June 4, CalMatters reported that the governor and Assembly wanted to renew the MCO tax, about $4.5 billion a year, while the Senate proposed charging large employers $285 a month for each Medi-Cal-enrolled worker. The June 29 signed budget renewed the MCO tax path and moved the major UIS/PPS clinic cut to July 1, 2027.
Sources for this story
CalMattersPart of
- California's budget, the health plan (MCO) tax and Proposition 35
The health plan (MCO) tax and Proposition 35
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FQHC Talent. (2026, June 4). California budget talks stalled over MCO tax and a new employer fee. Source: CalMatters. Retrieved November 11, 2026, from https://www.fqhctalent.com/intel/ca-budget-mco-tax-employer-fee-standoff-june-2026