Doctors, insurers sue Newsom over health insurance premium increases
The lawsuit says the managed care organization tax could raise premiums by about $100 a person each year.
- Doctors and health insurers have sued California Gov. Gavin Newsom and the state Legislature, arguing that a newly approved healthcare tax violates a voter-approved 2024 law.
- The lawsuit challenges the Managed Care Organization tax, which plaintiffs say circumvents Proposition 35’s limits on healthcare taxes and requirements for how the revenue is used.
- Health insurers warn that the higher tax could raise premiums by about $100 per person annually, potentially adding roughly $400 a year for a family of four.
- The Newsom administration says the tax is needed to help fund healthcare and offset major federal cuts to Medi-Cal, California’s public health insurance program for low-income residents.
- The dispute stems from changes in federal rules governing healthcare taxes, forcing California to restructure its approach while trying to preserve funding for Medi-Cal.
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California’s ‘largest tax hike in history’ called illegal by doctors, insurance firms
A new California healthcare tax that’s expected to jack up family premiums by hundreds of dollars annually isn’t even legal, according to a group of doctors and insurance firms. The California Medical Association and the California Association of Health Plans, which represent doctors and insurers respectively, accused state officials of violating Prop. 35, a 2024...
Doctors, insurers sue Newsom over health insurance premium increases – WTOP News
Doctors and health insurers filed a lawsuit Friday alleging Gov. Gavin Newsom and the Legislature violated the law when they approved a healthcare tax that could substantially increase insurance premiums for Californians. The lawsuit claims the recently passed tax on health plans, known as the managed care organization tax or MCO tax, circumvents a 2024 initiative that limits healthcare taxes and directs revenue toward specific purposes. The Cal…
Doctors, insurers sue Newsom over health insurance premium increases
Doctors and health insurers have filed suit alleging Gov. Gavin Newsom and the California Legislature violated the law when they approved a healthcare tax that could substantially increase insurance premiums
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