California Association of Health Plans Opposes Two Tax Bills
The California Association of Health Plans is officially opposing two bills (ABX2-4, ABX2-17) that aim to generate additional funding for Medi-Cal, the state's Medicaid program, by expanding taxes on some health insurance plans, the Sacramento Bee's "Capitol Alert" reports.
Background on Bills
ABX2-4, by Assembly member Marc Levine (D-San Rafael), would impose a $7.88 monthly flat tax per enrollee on all California managed care plans in an effort to raise nearly $2 billion annually for Medi-Cal, In-Home Supportive Services and other health care programs (Miller, "Capitol Alert," Sacramento Bee, 9/3).
ABX2-17, by Assembly member Kevin McCarty (D-Sacramento), would repeal a provision of law involving not-for-profit hospital corporations regulated under the Knox-Keene Act (Gorn, California Healthline, 9/1). It would shift oversight of certain health plans from the Department of Managed Care to the Department of Insurance's jurisdiction, generating about $300 million in funding for Medi-Cal.
Details of CAHP's Opposition
In an opposition letter last week, CAHP wrote, "We believe that ABX2-4 increases taxes on the private sector by about $1.2 billion," adding, "Our member health plans believe that the proceeds of any [managed care organization] tax should go back to Medi-Cal managed care to bolster the program. In contrast, ABX2-4 funds other programs with revenue from the tax."
Meanwhile, the group wrote that ABx2-17 would "arbitrarily" move some insurers "from one regulator to another without a valid reason, causing major disruption in the marketplace for consumers and providers" ("Capitol Alert," Sacramento Bee, 9/3).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.