Doctors and health plans sue to block California's new MCO tax
Issue
The California Medical Association and the California Association of Health Plans asked the California Supreme Court on October 1, 2026 to block SB 125, the new MCO tax law. They say it breaks Proposition 35 and want a compliant tax sent to CMS by December 31.
The MCO tax is a main source of state money for Medi-Cal.
Sources for this story
California Supreme Court filing S298916 (CAHP and CMA petition for writ of mandate)Sources for your board packet
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Part of
- California's budget, the MCO tax and Proposition 35
The MCO tax and Proposition 35
FQHC Talent. (2026, October 1). Doctors and health plans sue to block California's new MCO tax. Source: California Supreme Court filing S298916 (CAHP and CMA petition for writ of mandate). Retrieved October 9, 2026, from https://www.fqhctalent.com/intel/ca-mco-tax-sb-125-prop-35-supreme-court-petition-october-2026