The Governor has released legislative language for his Managed Care Organization (MCO) fix proposal and hopes to have it heard in the Special Session on Health Care next week.

The MCO fix is of critical importance for county funding and other Medi-Cal services, and the Governor’s proposal will spare health plans any net costs or losses while realizing $1.3 billion for critical Medi-Cal services.

Counties are at risk of significant statewide and county financial liabilities for services in the absence of a MCO fix. And, if the current MCO funding is not continued, the county Maintenance of Effort with In Home Support Services workers (IHSS MOE) would be jeopardized. So too would the plan to eventually transfer collective bargaining to the state for IHSS workers. Further, the loss of MCO funding for other Medi-Cal programs would also result in statewide cuts that could affect counties.

Because of this, CSAC is urging counties to contact their local legislative delegations to explain the specific potential local impacts and importance of passing an MCO fix as soon as possible. 

Achieving the two-thirds vote necessary in the Legislature to provide the fix has remained elusive, however. Because it is called a tax, the MCO fix has encountered opposition from Republican legislators. This is why it is critical to reiterate that there is no net increase to the health plans under the Governor’s proposal. 

We hope you will take the time to read more about why this issue is so important to counties at the links below.

CSAC’s Call to Action