Today’s Commentary: AB 1422: ObamaCare-lite in California, Complete With A Tax Increase
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… Read More