CMS approved a California tax on managed care organizations that will provide $1.1 billion for Medi-Cal, the state's Medicaid program, according to a report in The Sacramento Bee. The tax will also fund programs for people with developmental disabilities, according to the report.
After it was approved by Gov. Jerry Brown (D) as part of his budget, the proposal was under review for roughly two months. It was passed by state legislators in February, according to the report.
The new tax replaces an older version that only taxed plans with Medi-Cal patients. Federal officials required the state to expand the tax to all health plans or it would revoke its $1 billion in federal matching funds, according to the report.
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