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Posted on 10/06/2026 10:54:40 AM PDT by Responsibility2nd
Doctors and health insurers have sued California Gov. Gavin Newsom and the state Legislature, arguing that a newly approved healthcare tax violates a voter-approved 2024 law.
The lawsuit challenges the Managed Care Organization tax, which plaintiffs say circumvents Proposition 35’s limits on healthcare taxes and requirements for how the revenue is used.
Health insurers warn that the higher tax could raise premiums by about $100 per person annually, potentially adding roughly $400 a year for a family of four.
The Newsom administration says the tax is needed to help fund healthcare and offset major federal cuts to Medi-Cal, California’s public health insurance program for low-income residents.
The dispute stems from changes in federal rules governing healthcare taxes, forcing California to restructure its approach while trying to preserve funding for Medi-Cal.
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California’s ‘largest tax hike in history’ called illegal by doctors, insurance firms
A new California healthcare tax that’s expected to jack up family premiums by hundreds of dollars annually isn’t even legal, according to a group of doctors and insurance firms.
The California Medical Association and the California Association of Health Plans, which represent doctors and insurers respectively, accused state officials of violating Prop. 35, a 2024 initiative approved by 68% of voters that set certain limits on healthcare taxes.
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Fixed and clarified.
"California spent $9.5 billion on healthcare for undocumented immigrants in the 2024–2025 fiscal year, with $8.4 billion drawn from the state’s general fund."
I suspect that number is far too low and the amount spent was far higher.
NO, NO, No!!! That’s not how it works! It’s Blonald Blumpft’s fault!!!!
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