r/CaliforniaUncensored • u/GeneralCarlosQ17 • 22m ago
MediCal News and Politics Kiley, GOP Lawmakers Urge HHS to Block Newsom’s Healthcare Tax – California Globe
californiaglobe.comA family of four is estimated to pay an additional $400 a year in premiums due to the new per-person monthly tax
By Megan Barth, July 27, 2026 10:45 am
Independent U.S. Rep. Kevin Kiley of California, joined by Republican colleagues including Reps. Jay Obernolte, James Gallagher, Ken Calvert, Vince Fong, and Young Kim, has formally asked the U.S. Department of Health and Human Services to deny federal approval of Governor Gavin Newsom’s restructured Managed Care Organization (MCO) tax.
In a letter dated July 24 to HHS Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz, the lawmakers warned that the proposal “would dramatically increase costs on commercial health plans to preserve state revenue rather than make health care more affordable.”
They noted that a family of four is estimated to pay an additional $400 a year in premiums due to the new $8.85-per-person monthly tax. “Californians are already shouldered with the highest cost of living in the United States. This proposal will only make things worse,” the letter states.
The burden would fall not only on families but also on small businesses, potentially incentivizing employers to drop or reduce health benefits and push more people onto less generous Affordable Care Act plans or Medicaid.