Medi-Cal Managed Care Plans

Effective July 1, 2016, sales tax is no longer imposed on sellers of Medi-Cal managed care plans. Revenue and Taxation Codes sections 6174 through 6189, as added by Senate Bill 78 (Statutes 2013, Chapter 33), provides that this tax becomes inoperative on July 1, 2016. However, the Department of Health Care Services (DHCS) may continue to issue retro capitation payments for periods up to this date. Payments received for periods up to this date must continue to be reported and submitted to the BOE using an amended return no later than the last day of the following month.

If you need assistance with this information, contact our Compliance Policy Unit at 1-916-445-5167. A representative is available to assist you weekdays from, 8:00 am to 5:00 pm. Pacific time except state holidays.