Chris Hoene on Legislative Approval of New Managed Care Organization (MCO) Tax: “A Very Smart Policy Choice”

FOR IMMEDIATE RELEASE

SACRAMENTO – The California Budget & Policy Center, a nonpartisan public policy research group, issued the following statement from Executive Director Chris Hoene in response to the California Legislature’s approval today of a new managed care organization tax.

“The Legislature has made a very smart policy choice in approving the revamped managed care organization tax. This tax will allow the state to bring in more than a billion dollars each year in federal funds for Medi-Cal, stabilizing funding for a program that provides health care for more than 13 million low-income Californians, many of them children. The new MCO tax also prevents a billion-dollar shortfall in our state budget and makes funds available for key priorities beyond Medi-Cal.”

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The California Budget & Policy Center engages in independent fiscal and policy analysis and public education with the goal of improving public policies affecting the economic and social well-being of low- and middle-income Californians. Support for the the Budget Center comes from foundation grants, subscriptions, and individual contributions.###