Newsom Backs Tax Hike That Could Add $400 to Family Premiums as Doctors, Insurers Sue
Updated
Updated · Fox News · Oct 11
Newsom Backs Tax Hike That Could Add $400 to Family Premiums as Doctors, Insurers Sue
3 articles · Updated · Fox News · Oct 11
Summary
California doctors and health insurers sued to block Gov. Gavin Newsom’s redesigned health-plan tax, which would shift more Medi-Cal financing onto private coverage if federal regulators approve it for 2027.
$100 per person a year — about $400 for a family of four — could be added to premiums under the proposal, critics say, after Washington tightened rules on the taxes California uses to draw federal Medicaid matching funds.
Proposition 35, approved by voters, limits taxes on commercial health-plan enrollment and how the revenue can be spent; the California Medical Association says the state cannot sidestep those restrictions.
Newsom’s administration argues the measure was built to comply with the new federal law and preserve billions for Medi-Cal, even as California faces scrutiny over soaring program costs, including $12.4 billion for immigrants without legal status in 2025.