SACRAMENTO, Calif. (AP) - The Latest on the California Legislature’s work to restructure a tax on health plans (all times local):
4:20 p.m.
A California legislative panel has advanced a plan to restructure taxes on health plans and increase funding for developmental disability services.
Monday’s vote by a joint Assembly-Senate committee comes after influential groups on the right said they would not oppose the tax proposal.
The stance of organizations including the National Federation of Independent Business and the Howard Jarvis Tax Foundation gives Republicans political cover to help Democrats reach the supermajority required to pass the legislation.
Still, only Democrats supported the plan negotiated by Democratic Gov. Jerry Brown in committee Monday.
The plan prevents a $1.1 billion hole in the budget for Medi-Cal, California’s health plan for the poor. It also includes nearly $300 million for services for people with developmental disabilities.
The bills go next to the full Assembly and Senate.
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1 p.m.
California lawmakers are preparing to advance Gov. Jerry Brown’s proposal to restructure taxes for health insurance plans.
The Democratic governor negotiated the plan to impose a new tax on insurance plans and allow the state to continue collecting federal matching dollars, preventing a $1.1 billion hole in the budget for Medi-Cal.
The new tax would be offset by cuts in other taxes on insurance companies. The industry as a whole is expected to pay less in taxes, but each company would be affected differently.
The California Association of Health Plans says the agreement would secure funding for Medi-Cal while “protecting affordability” of insurance premiums.
A spokesman for Democratic Sen. Ed Hernandez of West Covina says a joint Assembly-Senate committee will meet Monday afternoon.
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