Assembly members press DHCS to convene Prop 35 advisory panel as providers await rate increases

Lawmakers and providers urged the Department of Health Care Services to convene the Proposition 35 stakeholder advisory committee and begin implementing the managed‑care‑organization (MCO) tax spending plan to speed provider rate increases and draw down federal matching dollars.

DHCS staff said the committee requires a six‑member quorum and that legislative appointees were recently completed; the department is preparing committee meeting materials and timelines. Jason Constantura of DOF and DHCS emphasized that the administration’s initial spending plan is reasonable but incomplete; the Legislative Analyst’s Office recommended early legislative oversight because federal rule changes could shrink future MCO tax capacity and because Proposition 35 changes how funds must be allocated beginning in 2027.

Providers urged…