Fong urges Trump HHS to reject California MCO tax restructuring
The KCRA interview features Rep. Vince Fong explaining a letter he and other House Republicans sent to HHS urging rejection of California's restructured Managed Care Organization (MCO) tax, set for January 2027 federal approval. Fong argues it violates voter-approved Proposition 35 by diverting most new revenue (~$2.3B/year) to the general fund to offset a structural deficit rather than dedicated Medi-Cal provider rate increases, while raising costs passed to families, businesses, and local governments at roughly $400 per family. He criticizes Newsom's Medi-Cal expansions (especially to undocumented immigrants), waste/fraud, lack of transparency, and failure to enact reforms, noting the program's spend has doubled from $93B to over $200B since Newsom took office. The state maintains the tax complies with Prop 35 by supporting the program amid federal H.R. 1 changes that reduced prior revenue.
Source: KCRA 3
