Obama Administration OKs California’s Health Plan Tax
The tax on managed-care organizations will bring in an estimated $1.1 billion for Medi-Cal.
The Sacramento Bee:
Feds Approve California’s Health Plan Tax Swap
The Obama administration has signed off on California’s expansion of a tax on health plans that contributes hundreds of millions of dollars to Medi-Cal and other programs, with plans receiving offsetting breaks on other state taxes. Tuesday’s announcement, after about two months of review by the federal government, comes a few days after Gov. Jerry Brown released a revised budget that assumed revenue from the health tax passed by lawmakers Feb. 29. The tax on managed-care organizations will bring in an estimated $1.1 billion for Medi-Cal, the state’s health care program for the poor, as well as allocating more money to people with developmental disabilities and other programs. (Miller, 5/17)
The Associated Press:
Obama Administration Backs California Health-Plan Tax
The U.S. Centers for Medicare and Medicaid Services notified state officials of their decision on Tuesday, preventing a $1.1 billion hole in the state budget. However, federal officials required one tweak that will result in a modest reduction in revenue to the state. (5/17)