Lege Trend: Taxing MCOs. Info to Keep you Ahead.

Which state legislature passed a new tax on MCOs? California

What arguments were made in favor of increased taxes on MCOs? More than $1 billion in federal funds would be drawn down to reduce California state debt

What does the MCO tax entail?

• An offset to minimize hits to MCOs that could be passed down to consumers
  • offsets will be to gross premimum tax & corporate tax
• To appease Republicans:
  • more funds were promised for treating autism
  • more funds for treating developmental disabilities
  • funds to reduce debt owed by hospital based skilled nursing facilities

What did opponents say?

• its offensive to use autism and developmental disabilities are a lure for votes
• nothing in this bill will directly help Californians

Sacramento Bee | California Legislature approves bills on taxing health plans

Los Angeles TImes | Q&A Everything you need to know about the healthcare plans tax the Legislature just passed

California Legislative Analyst Office | Overview of MCO Tax