California Creates $1.1 Billion Deficit With Failed Healthcare Tax

fiercehealthpayer

The state's managed care organization tax has faltered, creating an urgent need for reform

November 25, 2015 | By Katherine Moody

After failing to devise a way to replace the state's managed care organization tax, California lawmakers are facing a $1.1 billion hole in next year's health budget,Kaiser Health News reports. Health insurance plans that serve Medi-Cal managed care recipients were the main beneficiaries of the tax, and Gov. Jerry Brown recently vetoed more than a dozen healthcare-related bills that the state legislature sent his way.

A deal on the managed care organization tax is not expected until the middle of 2016, designated as the time when the tax must end. The cut of this money from the budget could make it difficult to raise already-low reimbursement rates for physicians, and talks between insurers, legislators and state health officials on how to replace the funds will continue, according to KHN. Article

Thank You Ms Moody and FHP

Ca. has been there before.

• Proposition 63 (2)

    California Legislators: When you're in a hole, keep digging.

   Eventually, they'll raise taxes high enough so that everyone but the welfare moochers and Govt workers will pack up and leave the State.

   And then they'll have to hold a bake sale. 

   "Cupcakes For FREE Health Care" which will be available out in the parking lot beside the Unicorn stalls.