Legislature Approves Health Plan Tax Package
The bills, which will go to Gov. Jerry Brown for his signature, close a $1.1 billion gap in the Medi-Cal budget and increase funding for agencies that serve people with developmental disabilities.
The Associated Press:
California Lawmakers Approve Revamped Health Insurance Tax
California lawmakers approved a tax package Monday that preserves $1.1 billion in federal funding for the state's health care program for the poor and gives about $300 million in funding to provide services for the developmentally disabled. (Noon and Thompson, 2/29)
Los Angeles Times:
Everything You Need To Know About The Healthcare Plans Tax The Legislature Just Passed
Culminating a prolonged, wonky debate that has consumed the Capitol for months, legislators on Monday approved a new tax on healthcare plans that would help finance the state’s public healthcare program for the poor. The package of bills — which await Gov. Jerry Brown’s signature — would overhaul a tax on managed care organizations (MCOs), in an effort to secure more than $1 billion in federal money to help pay for Medi-Cal, which serves a third of the state’s population. “I can’t emphasize enough the importance of the MCO financing proposal here before us today,” Assemblyman Rob Bonta (D-Alameda) said on the floor. (Mason, 2/29)
Capital Public Radio:
MCO Tax Deal Passes Legislature
The deal that won bipartisan approval Monday is backed by the health insurance industry, which has promised not to pass the tax on to consumers through higher health care premiums. The MCO tax drew unanimous support from Democrats and even won some Republican votes to reach the required two-thirds supermajority in each chamber. It passed the Senate 28-11, with GOP Sens. Anthony Cannella and Bob Huff voting yes. The Assembly approved the bill by a much wider 61-16 margin, with 11 Republicans voting yes. (Adler, 2/29)
The Sacramento Business Journal:
Legislature Approves New Tax To Plug Medi-Cal Funding Gap
Business groups, including the California Chamber of Commerce, did not oppose the plan after receiving assurances from insurers and others that it would not raise premiums. (Young, 2/29)
KQED:
California Legislature Approves Revised Health Plan Tax
Sen. Ed Hernandez, D-West Covina, led the effort to pass the legislation. “The proposal provides a stable ongoing funding source for Medi-Cal,” he said. “It allows California to maximize its share of existing federal dollars, and we’re always complaining that we don’t get our fair share. It will not negatively impact premiums.” (Orr and Aliferis, 2/29)
The Los Angeles Daily News:
Developmentally Disabled Helped By Passage Of State Funding Bills
People with developmental disabilities scored a victory Monday when California lawmakers passed bills that save Medi-Cal and increase funding for agencies that serve 300,000 residents with cerebral palsy, autism and Down syndrome. (Abram, 2/29)