California Advances Managed Care Tax Hike, Potentially Adding $100 to Annual Premiums
Updated
Updated · KCRA Sacramento · Jun 13
California Advances Managed Care Tax Hike, Potentially Adding $100 to Annual Premiums
3 articles · Updated · KCRA Sacramento · Jun 13
Summary
$100 a year in added costs for individuals — and about $400 for a family of four — could hit private health plans if California raises its managed care organization tax.
Lawmakers and Gov. Gavin Newsom are using the tax increase to help close the budget gap and absorb higher healthcare costs after federal cuts under H.R.1.
The proposal was folded into a budget agreement announced by legislative leaders, but Senate Budget Chairman John Laird said premium impacts are still uncertain and negotiations continue.
California's legislature must pass a budget version by June 15, though Monday's votes are expected to approve a placeholder while talks continue on a nearly $350 billion spending plan.
The tax debate also reflects a broader fiscal strain: California is preparing for persistent deficits as spending has outpaced revenue in recent years.