SACRAMENTO, Calif. (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.READ MORE: North Highlands Man Convicted Of Killing Foster Brother With Samurai Sword
Cigna Life and Health Insurance Company remains opposed, saying the bill would affect plans differently.
The committee took no action.READ MORE: How Did Sunday's Storm Affect California's Drought?
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.MORE NEWS: Rio Linda Residents Cleaning Up After The Storm
Copyright 2016 The Associated Press.