While Congressional Republicans are busy stopping ObamaCare and the dramatic expansion of government into our health care system, I am surprised to see so many Senate Republicans going along with just the opposite right now. Speaker Bass and the Administration are pushing hard to restore funding for Healthy Families that was vetoed by the Governor last month through the standard big government approach: they’ve decided to raise taxes to do it. AB 1422 would extend a 2.35% Gross Premiums Tax to Medi-Cal Managed Care Health Plans, raising $157 million. This tax increase is supported by health care plans because the state will use the new revenue to draw down a 2 dollars for 1 dollar match from the federal government. This “free money” will then be used to pay the Plans back for the tax and the leftover goes to Healthy Families. A classic political shell game.
What do taxpayers get out of this? Under the bill, premiums and copays will be increased which means it will be more expensive for children enrolled in the program. How is that program working? Using the state’s own numbers, on average one in three children do not receive the timely medical care they need because the true cost of coverage isn’t reimbursed. In areas like San Francisco, one out of two children do not receive timely care. And that’s assuming children can even get into the program. Before the veto there was a waiting list of 55,000 children. The threat of rising costs and health care rationing is exactly what Congressional Republicans are using to successfully fight ObamaCare. AB 1422 at least is honest and says that taxes need to be raised to pay for continued government health care. But, why are Senate Republicans going along with a tax increase and not standing up for reform in this program?
So far Senators Ashburn, Cox, Denham, Maldonaldo, and Wyland have voted for this bill in policy and fiscal committees, and it may come up for a full Senate vote on Monday. The bill requires a two-thirds vote which means Republicans have a chance to stop this tax increase. Let the Administration and Democrats propose program changes to Healthy Families before throwing more money at it in typical government fashion. Here’s a good first suggestion for reform: eliminate abortion coverage in Healthy Families. How can taxpayer funded abortion coverage ever be “healthy” for families? Why are pro-life Republicans not demanding it be removed?
Now is not the time to ignore that pledge you signed not to raise taxes, Senate Republicans! (The Howard Jarvis Taxpayer Association said in a letter, "HJTA strongly believes that AB 1422 is a tax. Without question, it does not meet any of the regulatory or other criteria needed to make it a bona fide fee." — see full letter attached below) A vote for this bad bill in committee does not mean it must be followed by a worse vote — passing it on the Senate floor!
We understand that Assembly Republicans, under the leadership of Leader Sam Blakeslee, have this bill in their crosshairs in the lower-chamber — but if we kill this tax increase in the Senate, everyone can focus on other areas…
If conservatives can slug it out with Liberals over ObamaCare at the federal level, we can bring common sense reforms to Healthy Families, without tax increases, here in California.
P.S. As an aside, no self respecting GOPer should feel comfortable voting for any bill authored by Karen Bass…
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