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Home | Newsroom | Miscellaneous | Governor Brown Signs Health Care Special Session Legislation

Governor Brown Signs Health Care Special Session Legislation

Sacramento, California – Governor Edmund G. Brown Jr. today announced that he has signed the following bipartisan managed care organization (MCO) financing legislation passed by both houses of the Legislature yesterday:

  • AB 133 by the Committee on Budget – Budget Act of 2015.
  • ABX2 1 by Assemblymember Tony Thurmond (D-Richmond) – Developmental services: Medi-Cal: funding.
  • SBX2 2 by Senator Ed Hernandez (D-West Covina) – Medi-Cal: managed care organization tax.

The legislation will result in a net tax cut, maintain more than $1 billion in critical federal funds, reduce debt by more than $400 million and direct approximately $300 million in new funding to help those with developmental disabilities.

The legislation restructures the taxes assessed on the health insurance industry and is projected to reduce overall tax liability for the industry. In addition to being approved by more than two-thirds of the Legislature, this bipartisan legislation was supported by dozens of organizations including the Western Center on Law & Poverty.

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