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Stakeholders press DHCS to convene Prop 35 advisory committee quickly so MCO tax funds reach providers
Summary
Panelists urged faster implementation of Proposition 35 and clearer timelines for payments to providers. DHCS said it has nine of the advisory committee's appointments and is scheduling meetings; LAO and providers warned of federal uncertainty that could shrink future MCO tax revenue and urged legislative oversight.
The subcommittee examined implementation plans for Proposition 35 — the measure that continuously appropriates the Managed Care Organization (MCO) tax revenues beginning in 2025 and authorizes new payment methodologies — and took testimony from DHCS, the Department of Finance and multiple provider groups.
DHCS staff explained that Prop 35 requires consultation with a stakeholder advisory committee before proposing or implementing payment methodologies. The department said nine of the committee members had been appointed and that it is developing timelines for the committee's first meetings. DHCS emphasized that the structure and timing of specific payments will depend on the payment methodologies the committee recommends and that federal approval and cash‑flow…
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