CA AB115

Establishes a managed care organization provider tax on health plans providing Medi-Cal services for fiscal years 2019-20 through 2021-22 and the first six months of 2022-23, with Medi-Cal enrollee taxes ranging from $40 to $55 per enrollee depending on the fiscal year and enrollment tier.

Creates the Health Care Services Special Fund to receive tax revenues, which are continuously appropriated to the Department of Health Care Services to fund the nonfederal share of Medi-Cal managed care rates for children, adults, seniors, persons with disabilities, and dually eligible beneficiaries.

Makes tax collection contingent upon federal approval from the Centers for Medicare and Medicaid Services as a permissible health care related tax under federal Medicaid requirements, with the director required to certify federal approval in writing.

Imposes interest at 10 percent per annum on unpaid taxes and monthly penalties equal to accrued interest for payments more than 60 days overdue, though the director may waive interest or penalties for plans experiencing financial hardship.

Becomes inoperative on January 1, 2023, and is repealed as of January 1, 2024, unless the department determines the tax has not met legislative intent or federal approval is not maintained.