News Headlines Article

Health plans’ finances a big unknown in California tax swap package
Sacramento Bee

A $2.4 billion managed-care organization tax package awaiting votes in the California Legislature reflects the heavy imprint of the state’s health insurance industry, which pushed for major changes to avoid any tax hit that could be passed on to customers.

The approach has earned the backing of the California Chamber of Commerce and neutrality from the influential Howard Jarvis Taxpayers Association. It has a strong chance of winning enough support from Republican lawmakers to reach the needed two-thirds vote threshold to pass. Then, the state would be on the verge of its ultimate goal: continuing to pull in more than $1 billion in federal matching money.