California Republicans urge Trump administration to kill Gavin Newsoms $400-a-year healthcare tax

California Republicans have had enough tax hikes — appealing directly to President Donald Trump’s admin to kill a widely-hated health care tax increase that’s expected to cost residents an additional $400 per year.Assembly Republicans are demanding Centers for Medicare and Medicaid Services Administrator Dr.Mehmet Oz and Health and Human Services Secretary Robert F.
Kennedy to nix a recently signed plan that would raise premiums on Californians with private insurance.The so-called managed care organization tax, signed by Gov.Gavin Newsom last week, is intended to raise funding for state Medicaid programs but could raise annual premiums by $400 or more for a family of four, industry groups have warned.
“Newsom and Sacramento Democrats blew billions, can’t balance a budget, and now they want working families to pay the price with another $425 in higher healthcare costs,” Assemblymember Carl DeMaio said in a statement.The tax proposal would require health insurers to pay a monthly rate of $8.85 per enrollee — which amounts to more than $100 per year annually for every individual on the health plan, if companies pass all the costs onto consumers, per CalMatters.
The Legislative Analyst’s Office estimated that Californians could face a 1.5% increase in monthly premiums — on top of typical annual rate increases. “Californians are already struggling to afford coverage—the last thing they need is another backdoor tax hike from Sacramento,” DeMaio said.The tax hike — one of two approved in Newsom’s upcoming state budget — infuriated even some Dems in the legislature, as California residents struggle with high prices on gas, housing, utilities and other living expenses.
Sen.Akilah Weber Pierson, a Dem from San Diego, called the tax plan “extremely problematic” at a hearing last month, CapRadio reported.
“Raising health insurance premiums to help balance the state budget is simply robbing Peter to pay Paul,” added Dr.René Bravo, ...