Capitol Chat: MCO Tax Update Guest Ben Bradford Friday, March 4, 2016 | Sacramento, CA Listen / download audio Update RequiredTo play audio, update browser or Flash plugin. Alan Cordova / Flickr The California legislature finally passed a bill to prevent a $1.1 billion hole in California's health care budget. The “managed care organization” (MCO) tax brings in federal funds for Medi-Cal, California’s health care program for the poor. The federal government says the state’s current structure is no longer acceptable, and must be fixed by the end of June for the state to keep getting the money. Capital Public Radio State Government Reporter Ben Bradford has been covering the story and can explain what Democrats exchanged for Republican support of the new tax.