Doctors, Insurers Sue California Over Healthcare Tax They Call Illegal; Family Premiums Up $400
The California Medical Association and the California Association of Health Plans have sued the state, accusing officials of violating Proposition 35 — a 2024 initiative approved by 68% of voters that set limits on healthcare taxes — with a new healthcare tax passed in June.
The managed care organization (MCO) tax was approved by the Legislature in June and signed by Gov. Gavin Newsom. Insurers estimate it will raise premiums by $8.85 per month per enrollee — about $100 a year for an individual and $400 for a family of four. State officials said the tax was needed to cover revenue shortfalls from President Trump's federal funding cuts.
“This lawsuit is about a simple principle: the state has to follow the law,” said CMA CEO Dustin Corcoran. “California should not resolve its budget shortfall by imposing a massive tax increase on health care costs for working families,” added CAHP president Charles Bacchi. The California Taxpayers Association has called the tax package “the largest tax increase in state history.” (NY Post, Oct. 5)
Published by GSM · USA (original Chinese edition)
Photo: Wikimedia Commons
