Dive Brief:
- Gov. Jerry Brown's proposed tax on health plans introduced in May, via a special healthcare session, stalled last week; leaving a $1.1 billion shortfall in Medi-Cal funding.
- California has a tax on managed care plans to currently cover Medi-Cal payments.
- The federal government has said the current tax, due to expire next year, has to be broadened. However, it wasn't supported in the Legislature and didn't meet the required two-thirds majority.
Dive Insight:
Diana Dooley, Health Secretary, told the Sacramento Business Journal: "We did everything we could to make this work. It is deeply disappointing that the health plans could not come together to support this proposal and the Republican legislators have refused to consider any tax adjustments at all."
Since the special session on healthcare is open-ended, there is still time for lawmakers to find a solution.