California Legislature Approves Revised Health Plan Tax

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The bill had widespread support in the Capitol and elsewhere, including the trade group for health insurance plans. Photo by Craig Miller/KQED

By Katie Orr and Lisa Aliferis, KQED News Fix/State of Health

After a year of wrangling, California lawmakers Monday approved a reform of a critical tax on health plans designed to keep more than a billion dollars of federal funds flowing to Medi-Cal. The deal includes millions for services for the developmentally disabled.

The old tax was set to expire July 1, under new federal rules. The current tax is levied only on plans for Medi-Cal patients. Under the new requirements, all managed care plans must pay.

Read the complete story at KQED News Fix/State of Health.

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