State lawmakers approved a redesigned managed care tax to preserve federal Medicaid funding while adapting to new federal limits on health plan taxes.
The plan would lower taxes on Medicaid plans and raise private-plan taxes, shifting more costs toward privately insured Californians if finalized by the governor.
Private plans would pay $8.85 monthly per enrollee, creating a ~$1.5B yearly cost for them overall if federal officials accept California’s revised structure.
An independent fiscal office estimates full pass-through could add ~1%-2% to monthly premiums, before regular yearly premium adjustments for privately insured families.
Supporters say revenue would sustain Medicaid services and provider rate commitments; budget experts expect the governor’s approval, with federal approval still required.
