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Legislature approves new tax to plug Medi-Cal funding gap
San Francisco Business Times

California’s Legislature approved a new tax on health insurance plans Monday in order to maintain federal funding for Medi-Cal. The legislation now advances to Gov. Jerry Brown. The deal involves a complex tax swap on managed-care organizations that lawmakers said was necessary in order to maintain over $1 billion in annual federal spending on Medi-Cal, the state’s health care program for the poor.