California's New Health Tax Could Cost You $400 a Year. Here's Why One Congressman Is Fighting It.

Congressman Vince Fong is calling on the Trump administration to reject California’s revised Managed Care Organization tax, a plan he says would use Medicaid funds to mask the state’s budget deficit. The tax, which passed the state legislature last month, could raise private insurance premiums by roughly $100 per person or $400 per family each year. Fong argues the plan violates Prop 35, the ballot measure voters passed to protect Medicaid funding, and he’s pointing to the state’s soaring Medicaid budget which has doubled from $93 billion to $200 billion under Governor Newsom.

The proposal also includes a“free rider penalty”aimed at large corporations with employees on Medicaid. Fong says that’s another burden on businesses already struggling with California’s high cost of living. On top of everything, the state still owes the federal government $20 billion in unemployment insurance debt from the pandemic. Fong’s message to the Department of Health and Human Services is simple: reject this plan before it hits your wallet.

For Sacramento families, the stakes are real. Insurance premiums are already climbing, and any state-level tax increase will likely land on the backs of consumers. Whether you’re covered through your job, the marketplace, or Medi-Cal, this decision in Washington could shape your health care costs for years. Do you think California should be able to shift these costs to families, or is Fong right to demand a different approach? Let us know in the comments.