DHCS Confirms California's Current MCO Tax Remains Intact Through December 31, 2026—No June 30 Transition Cliff

Correction (July 15, 2026): DHCS's current financing page states that the February 2026 CMS final rule leaves California's existing Managed Care Organization tax intact through its authorized term ending December 31, 2026. The same tax structure will no longer be federally approvable after that date, so the live planning cliff is year-end—not June 30—and the earlier claim of a required six-month extension and associated ~$1.1 billion June-triggered gap is retired.

FQHC leaders should preserve the December financing transition in forecasts while DHCS works with partners on a successor tax and related payment methodologies.