KFF Health NewsJun 20 2024 Gov. Gavin Newsom, state lawmakers, and health industry leaders have a small window to reach an agreement on billions of new dollars for Medi-Cal before it's put to voters in November.
"The importance of this ballot initiative is finally being serious about investing in the viability of the Medi-Cal system," said Adam Dougherty, chief of emergency medicine at Sutter Medical Center in Sacramento. "The MCO tax literally touches every aspect of the Medi-Cal system, and it can't be at the mercy of year-to-year budget crises."
Newsom's desire to claw back most of the promised money puts him at odds with proponents of the initiative, many of whom have long counted themselves among his allies. Elana Ross, a spokesperson for Newsom, declined to comment on the status of the initiative. Related StoriesRevenue from the managed-care tax allows the state to draw matching federal dollars, more than doubling the amount available. Federal and state money would also be used to reimburse the health plans for nearly all the taxes they paid, theoretically having no effect on insurance premiums.