Assembly Republicans

Statement by Assembly Republican Leader Regarding Agreement on Managed Care Organization Financing Reform

Monday, February 29, 2016
Brittany Parmley (916) 319-2724

SACRAMENTO - Assembly Republican Leader Chad Mayes, of Yucca Valley, today issued the following statement in response to the announcement of the Managed Care Organization (MCO) financing reform plan:

“The new MCO plan is a ‘win-win’ for the state of California. This is a $100 million dollar tax cut that will prevent increases to health insurance costs for consumers and will ensure the continuation of more than $1 billion in federal funding to the state. This funding helps Californians get more of their fair share back from Washington and avoid cuts to health care programs for the most vulnerable.  

“Assembly Republicans fought to protect Californians, secured funding that will improve services for the developmentally disabled community, and paid down more than $400 million in state debt. This bipartisan agreement is an example of how government should work for the best interests of the people.”

Assembly Republicans worked to include the following in the Managed Care Organization (MCO) Financing Reform plan: 

  • A $100 million net tax cut to avoid increases in health care costs; 
  • More than $1 billion in federal matching funds each year to pay down debt and help California’s more vulnerable;
  • More than $300 million for developmental disabilities funding to help individuals live more fulfilling and independent lives;
  • More than $120 million to help skilled nursing facilities and connected acute care hospitals keep their doors open to care for fragile patients;
  • Nearly $175 million to repay loans for transportation projects that will reduce congestion and improve the condition of our roads; and
  • $240 million to address state retiree health care obligations and start tackling $74 billion in unfunded liabilities.