California lawmakers OK health insurance tax

Feb 29, 2016 7:02 PM by News Staff

California lawmakers have approved legislation to restructure taxes on health insurance plans and boost funding for developmental disability services.

The three-bill package passed the Assembly and Senate on Monday after a handful of Republicans joined Democrats in support.

The plan prevents a $1.1 billion hole in the budget for Medi-Cal, the state's health program for the poor.

Monday's approval is a victory for Democratic Gov. Jerry Brown. He called a special session last year to work on health care financing and spent months negotiating a package that could win a two-thirds supermajority.

The package includes more than $300 million for services for people with developmental disabilities. Payments to care providers will increase under the plan.

Republicans split over the tax measure, although they unanimously approved two related bills.


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