CA AB136

Amends Section 14199.85 of the Welfare and Institutions Code to raise the managed care organization (MCO) provider tax on Medi-Cal taxing tier II plans.

Increases the Medi-Cal per enrollee tax amount for tier II from $182.50 to $205 for the 2024 calendar year, maintaining $205 for 2025 and 2026 (previously scheduled to increase to $187.50 and $192.50 respectively).

Maintains existing tax rates for other taxing tiers and non-Medi-Cal enrollees, with tier II other enrollees taxed at $1.75 for 2023-2024, $2 for 2025, and $2.25 for 2026.

Authorizes the Department of Health Care Services to modify tax provisions as needed to comply with federal law, obtain federal approval, or ensure federal financial participation without significant increases to aggregate tax collections.

Declares the bill an urgency statute effective immediately to implement the new tax structure at the earliest allowable date and preserve access to Medi-Cal services.