What insurers pay, and what impacts that
The tax applies to Medi-Cal managed care organizations, including the state’s largest plans: Anthem Blue Cross, Health Net, Molina Healthcare, Kaiser Permanente and LA Care Health Plan, the nation’s largest publicly operated health plan. State finance officials say the increase in estimated costs for a family of four, about $400 a year, is needed to fund targeted rate increases for Medi-Cal providers as the program faces increasing budget pressures. An earlier version of the tax approved by CMS in December 2024 was projected to generate about $7.2 billion in additional Medi-Cal funding by the end of 2026. The question now is whether the modified, higher structure required for OBBBA compliance gets the same approval.
