California legislators approved a health tax bill to restructure the managed care organization (MCO) tax, lowering it on Medi-Cal plans and raising it on private plans to equal levels. This aims to maintain federal funding amid new federal restrictions but may increase private insurance premiums by about 1.5%, adding roughly $100 annually per consumer. Critics warn it raises costs for families and conflicts with voter-approved limits on private plan taxes. The plan awaits the governor's signature and federal approval.
Continue to full article