Weekly Health Compliance Briefing

July 15, 2026

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While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.

Aon Publications

California Restructures MCO Tax; Carriers May Pass Costs to Fully Insured Plans
Governor Newsom signed Senate Bill 125 (SB 125), revising California’s managed care organization (MCO) tax framework for 2027 through 2029 to apply an $8.85 per-enrollee per-month tax to commercial health plans and MCOs subject to California law. Health insurance carriers are expected to pass through all or a portion of this tax increase to fully insured employer plan sponsors through higher rates and premiums, depending on contractual arrangements. Several additional states could follow California’s lead on these taxes. 

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