Fight Over Medicaid Managed Care Tax Punches Hole in California Budget

(By – Barbara Feder Ostrov, Kaiser Health News)

California lawmakers are staring down a $1.1 billion hole in next year’s health budget after failing to come up with a way to replace the state’s “managed care organization tax” on health insurance plans that serve Medi-Cal managed care recipients.

It’s a hole big enough that state Gov. Jerry Brown recently used it as a reason to veto 15 health care and other bills sent to him by the state legislature.  And unless it’s filled, Brown, a Democrat, is expected to issue a preliminary state budget in January with sizeable cuts to health and human services programs. Read more…

Kaiser Health News is a nonprofit national health policy news service that is part of the nonpartisan Henry J. Kaiser Family Foundation.

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