The reasoning is that CA uses that tax money in addition to a match provided by the federal government to balance the budget. I’m not a fan of not making it permanent, but the flexibility of re-authorizing the tax each cycle has been very helpful to making sure the CA budget is level. That tax money is returned to the healthcare providers through Medi-Cal so they aren’t really losing anything I think, but the matched money from the federal government can be moved around. Something like that.
Why would anyone vote to increase taxes on health insurance? Bizarre.
The reasoning is that CA uses that tax money in addition to a match provided by the federal government to balance the budget. I’m not a fan of not making it permanent, but the flexibility of re-authorizing the tax each cycle has been very helpful to making sure the CA budget is level. That tax money is returned to the healthcare providers through Medi-Cal so they aren’t really losing anything I think, but the matched money from the federal government can be moved around. Something like that.