Proposition 56 Family Planning – Managed Care Supplemental Payment
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Overview
The California Healthcare, Research and Prevention Tobacco Tax Act of 2016 (Proposition 56), passed by the voters in November 2016, increased the excise tax rate on cigarettes and electronic cigarettes, effective April 1, 2017, and other tobacco products effective July 1, 2017. The excise tax increased to $2.87 per pack of 20 cigarettes on distributors selling cigarettes in California with an equivalent excise tax rate increase on other tobacco products.
Beginning with the July 1, 2019 rating period, the state has directed Managed Care Plans (MCPs) to make enhanced supplemental payments to eligible provider types for the applicable CPT codes upon approval from CMS and receipt of funding. The enhanced supplemental payment is contingent upon the MCPs’ receipt of providers’ actual utilization for these codes reported through encounter data for SFY 2019-20 through December 31, 2021.
These supplemental payments for Medi-Cal family planning services are intended to help support the larger Medi-Cal population in accessing and using family planning services as well as the providers delivering such services in the Medi-Cal program.