Tallon entered politics as a Democrat. He was a member of the New York State Assembly from 1975 to 1993, sitting in the 181st, 182nd, 183rd, 184th, 185th, 186th, 187th, 188th, 189th and 190th New York State Legislatures. He was Majority Leader from 1987[2] to 1993, and was Acting Speaker for 3 days in 1991 after Mel Miller lost his seat upon a felony conviction until the election of Saul Weprin.[3] He was Chairman of the Assembly's Health Committee from 1979 to 1987, and spearheaded efforts to reform the Medicaid program while expanding eligibility for pregnant women and children.
In 1993, he joined the Henry J. Kaiser Family Foundation, and served as Chairman of the Kaiser Commission on the Future of Medicaid and was a member of the Joint Commission on the Accreditation of Healthcare Organizations. He also served as Secretary for the Alpha Center and for the Association for Health Services Research, and was on the boards of the Alliance for Health Reform, The Commonwealth Fund, and the New York Academy of Medicine. He concluded a three-year term as a member of the Prospective Payment Assessment Commission (ProPAC), and has held visiting lecturer appointments at the Columbia University and Harvard University Schools of Public Health.[4]
He was Chairman of the Kaiser Commission on Medicaid and the Uninsured. Tallon was President of the United Hospital Fund of New York, the nation's oldest federated charity. The Fund addresses critical issues affecting hospitals and health care in New York City through health services research and policy analysis, education and information activities, and grantmaking and volunteerism.
In 2007, Tallon was elected Chairman of the Commonwealth Fund after serving as director for over a decade.[4]