03/28/2024

Feds Begin Review of California’s Health Plan Tax

The Brown administration this week formally asked the U.S. government to sign off on a revamped tax on health plans that has the primary goal of continuing to pull in more than $1 billion in federal money.

The three-year tax was part of a bipartisan package that passed the Legislature Feb. 29 and was signed by Gov. Jerry Brown the next day. It would replace an existing tax on health plans with Medi-Cal managed care patients that expires July 1 with a tax that covers more health plans.

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