politics
California Republicans ask federal officials to reject state healthcare tax plan
Assembly Republicans sent a letter to federal health agencies requesting denial of a managed care tax signed by the governor last week. The measure would require insurers to pay $8.85 per enrollee monthly and could raise annual premiums by about $400 for some families.
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Assembly Republicans sent a letter to the Centers for Medicare and Medicaid Services and the Department of Health and Human Services asking officials to deny approval of a managed care organization tax signed by the governor last week. The tax would require health insurers to pay a monthly rate of $8.85 per enrollee.
Industry groups have estimated the cost could add more than $100 per year for each person covered if insurers pass the full amount to consumers.
Background on the proposal The Legislative Analyst’s Office projected a 1.5 percent increase in monthly premiums on top of normal annual rate adjustments. The governor’s office has said the revenue would support state Medicaid programs. Some Democratic legislators also raised concerns during hearings last month.
