Congressman Fong Applauds CMS Six-Month Extension for California’s MCO Rule

BAKERSFIELD, Calif. – Today, Congressman Vince Fong (CA-20) released the following statement in response to the Centers for Medicare & Medicaid Services (CMS) announcement of final rulemaking to implement the Managed Care Organization (MCO) tax provision established in the Working Families Tax Cuts Act. The final rule provides a six-month transition period for California's MCO provision to comply with the rulemaking on provider tax uniformity.

“Thank you to CMS Administrator Dr. Oz for working with me to assist hospitals and health care providers throughout the Central Valley and across California,” said Congressman Fong (CA-20). “After visiting our region and hearing directly from frontline providers, Dr. Oz acted responsibly by granting California a six-month extension of its MCO application — a decision that provides additional resources for local hospitals. These resources are intended to help hospitals and providers continue delivering care to patients across our state and in our community. Under Proposition 35, and given past actions by the Newsom Administration, I will maintain strong oversight to ensure these dollars are used as voters intended: to support patient care and preserve access to essential health services — not to backfill the state’s general fund.”