Lawmakers Unveil California Health Plan Tax Proposal

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SACRAMENTO (AP) —

The California Legislature has unveiled a bill imposing a new tax on health insurance plans to help pay for Medi-Cal.

The bill introduced Monday would prevent a $1.1 billion hole in California’s health care budget. But it first needs bipartisan support in the Assembly and Senate to achieve the supermajority required of tax increases.

The California Association of Health Plans says it has not yet taken a position on the bill.

Gov. Jerry Brown’s administration has worked for months to negotiate a compromise that could win support from insurers.

The new tax replaces a tax that applied only to Medi-Cal managed care organizations. The new tax would be offset by a cut in existing health insurance taxes.

The bill could begin moving through legislative committees as soon as this week.