Private health insurance rates in California may rise next year as state lawmakers and the governor move forward with a plan to increase what’s known as the state’s managed care organization tax. The updated tax is one of a variety of ways the state leaders are trying to balance the state’s budget while grappling with increased healthcare costs following the Trump administration’s federal cuts through H.R.1. The state tax applies to health insurers, who have signaled they would pass the tax onto customers. Individuals with private health insurance plans could see their rates go up an average of about $100 a year, or $400 a year for a family of four. The proposal is part of the broader state spending plan for the upcoming financial year that starts July 1. Lawmakers and Gov. Gavin Newsom are still in the process of finalizing the overall budget. It’s expected to be the largest spending plan in the state’s history at nearly $350 billion. Lawmakers face a deadline to pass their version of a state spending plan by June 15, otherwise state law says they don’t get paid. The updated tax on health plans, which was originally proposed by Gov. Newsom, was included in an agreement announced by State Senate Pro Tem Monique Limón and Assembly Speaker Robert Rivas.In an interview on KCRA 3 Friday, the State Senate’s Budget Chairman John Laird, D- Santa Cruz, said the tax is still up for debate.When asked to clarify if health insurance premiums are going up, he said, “we don’t know that yet, we will have discussions.”Laird noted the state cannot restore all of the federal government’s cuts but lawmakers are trying to do their best. “Backing up food cuts, delaying the remaining medical cuts, backing up distressed hospitals, and backing up counties so they can try to have extra workers with these new (federal) rules to keep people on food assistance and medical care without dropping off,” Laird said. While votes are scheduled in the Assembly and State Senate on Monday, the budget they’ll pass is mainly a place holder to keep negotiations going for the next couple of weeks. Aside from juggling healthcare costs, California is bracing for persistent money problems in the years ahead because state leaders have been generally spending more money than the government has brought in through revenue. Addressing that issue through savings and potential law changes are also parts of the ongoing negotiations. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
Private health insurance rates in California may rise next year as state lawmakers and the governor move forward with a plan to increase what’s known as the state’s managed care organization tax.
The updated tax is one of a variety of ways the state leaders are trying to balance the state’s budget while grappling with increased healthcare costs following the Trump administration’s federal cuts through H.R.1. The state tax applies to health insurers, who have signaled they would pass the tax onto customers. Individuals with private health insurance plans could see their rates go up an average of about $100 a year, or $400 a year for a family of four.
The proposal is part of the broader state spending plan for the upcoming financial year that starts July 1. Lawmakers and Gov. Gavin Newsom are still in the process of finalizing the overall budget. It’s expected to be the largest spending plan in the state’s history at nearly $350 billion.
Lawmakers face a deadline to pass their version of a state spending plan by June 15, otherwise state law says they don’t get paid. The updated tax on health plans, which was originally proposed by Gov. Newsom, was included in an agreement announced by State Senate Pro Tem Monique Limón and Assembly Speaker Robert Rivas.
In an interview on KCRA 3 Friday, the State Senate’s Budget Chairman John Laird, D- Santa Cruz, said the tax is still up for debate.
When asked to clarify if health insurance premiums are going up, he said, “we don’t know that yet, we will have discussions.”
Laird noted the state cannot restore all of the federal government’s cuts but lawmakers are trying to do their best.
“Backing up food cuts, delaying the remaining medical cuts, backing up distressed hospitals, and backing up counties so they can try to have extra workers with these new (federal) rules to keep people on food assistance and medical care without dropping off,” Laird said.
While votes are scheduled in the Assembly and State Senate on Monday, the budget they’ll pass is mainly a place holder to keep negotiations going for the next couple of weeks.
Aside from juggling healthcare costs, California is bracing for persistent money problems in the years ahead because state leaders have been generally spending more money than the government has brought in through revenue. Addressing that issue through savings and potential law changes are also parts of the ongoing negotiations.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
