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Insurers Back Proposed California Health Plan Tax

Andrew Nixon / Capital Public Radio
 

Andrew Nixon / Capital Public Radio

(AP) — Most of California's health insurance companies are supporting Gov. Jerry Brown's plan to restructure a tax on health plans.

The California Association of Health Plans told a state Assembly committee on Wednesday that the proposal would secure funding for Medi-Cal while "protecting affordability" of insurance premiums.

Cigna Life and Health Insurance Company remains opposed, saying the bill would affect plans differently.

The committee took no action.

Brown wants to impose a new tax on insurance plans, which would be matched by federal dollars. It would prevent a $1.1 billion hole in the budget for Medi-Cal, California's health insurance plan for the poor.

In exchange, the state would eliminate other taxes on insurance plans.

The legislation needs bipartisan support to achieve the supermajority needed to increase taxes.