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Advocates urge governor and legislature to renew vital revenue source for children's health

January 09, 2013
Area(s) of Interest: Access to Care Advocacy 


Revenue from the Managed Care Organization (MCO) assessment should be renewed to draw down federal funding and generate resources to strengthen children’s access to health care


Sacramento, CA – A coalition of California health advocates and providers today released a statement calling on Governor Brown and the Legislature to renew a critical revenue source – a Managed Care Organization (MCO) assessment that could raise approximately $350 million per year – to address the health care needs of children.


“Providing California children with the care they need to grow up healthy is an essential investment in the future of our state. The MCO assessment, which originally passed in 2009 but expired last year, has enjoyed support from both political parties, health plans, providers, and advocates in years past because it provided important revenues for the state and vital funding for children’s access to health care. The assessment also brings additional revenue into the state through federal matching funds.


"We urge the Governor and the Legislature to renew the MCO assessment and to continue devoting a portion of the revenues to support children’s health care.


"California can take a step forward for children’s health by utilizing the MCO assessment to make vital improvements in the Medi-Cal program, which will provide health coverage for more than 4.5 million California children. As the state moves nearly one million children in the Healthy Families Program to Medi-Cal during 2013, adequate funding is more important than ever to ensure adequate care for California’s children.


"MCO revenues could be used to help insure more children by funding enrollment assistance for families enrolling in Medi-Cal. MCO revenues could also support targeted increases in Medi-Cal payments designed to make sure there are enough quality providers offering the services children need.


"It is crucial that the Governor and the Legislature take this opportunity to invest in the health of California’s children.”


The coalition includes the following:


  • American Academy of Pediatrics, California

  • California Academy of Family Physicians

  • California Children's Hospital Association

  • California Coverage and Health Initiatives

  • California Medical Association

  • California Primary Care Association

  • California School Health Centers Association

  • Children Now

  • Children's Defense Fund-California

  • Latino Coalition for a Healthy California

  • March of Dimes

  • National Physicians Alliance-California

  • PICO California

  • The Children's Partnership

  • United Ways of California

  • 211 Bay Area (serving: Marin, Napa, Solano, San Francisco and San Mateo)

  • 211 Monterey - United Way of Monterey Co.

  • 211 Santa Cruz

  • 211 Shasta - United Way of Northern California

  • 211 Santa Bernardino

  • 211 Santa Clara

  • 211 Humboldt

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