Janet West of Long Beach, CA lays out the bigger reason why every legislator must reject the MCO Tax:
Currently, there's a CA tax paid by Medi-Cal insurance companies and the tax is reimbursed by the Federal Govt. to these companies. So in effect, CA takes money out of the company's pocket and the Federal Govt. puts the money back in their pocket. Proposed in SB-2, instead of charging this tax to the Medi-Cal insurance companies, CA will tax all other insurance companies which of course will pass on this cost to it's customers - all people in CA who have healthcare insurance. Since the federal government never decreases it's budget, the same amount of money will be available in the federal government healthcare dollars to CA so this $1.3B will be available to be diverted to cover the expansion of Medi-Cal for illegal aliens and in fact, must be used for this purpose if SB 10 is passed. SB 10, through the Section 1332 waiver, specifies that federal financial participation be maximized to cover this expansion of services to illegal aliens. It is my belief this money which will now be unattached will instead be diverted to funding this expansion.
"The power to tax is the power to destroy." Californians need legislators to stop destroying our economy and job opportunities!
Betty forwarded an update message from Sen. Moorlach. It appears as if the media is trying to shame the Republicans into voting for this MCO tax saying that it would increase developmental funding. Sen. Moorlach says: "So, voting for the spending increases can be done without voting for the new tax, as the costs can be absorbed with current revenues. ... The managed care organization (MCO) tax increase will be the topic for this weekend, as we will vote on the bills Monday at noon. ... and the federal matching funds will be $1.3 billion, ... If CMS [the Federal department which oversees Medicare and Medi-Cal] has $1.3 billion of California taxpayers' money, then just give it to us. Forget the Obamacare machinations. " So it appears as if Sen. Moorlach will stand strong but my concern is that according to the article he sent, it will only take one GOP Senator to cave to pass this bill, SB-2.
No more caving. More legislators must follow the example of Jim Moorlach (R-Costa Mesa) and Andy Vidak (R-Hanford) and shout "Hell No!" to the MCO tax.
From the Los Angeles Daily News: "A desperately needed increase in developmental funding will pivot on whether it can attract one “aye” vote from a Republican member of the state Senate. ...
The bills will need some Republican support in each house. Assembly GOP leader Chad Mayes is firmly behind the deal, so Assembly passage should not be an issue. But Senate GOP leader Jean Fuller has urged her caucus to reject the MCO reform because she views it as a tax increase." No duh, it is a tax increase!
Baloney! The money needed for the disabled can still come through, without tax hikes. The Mainste
On Monday, this bill will be voted on. SB-2
Medi-Cal: managed care organization tax: 12202.2. ... (b) paid by an insurer described in this subdivision shall be 0 percent ...
14199.50. ... (a) Generate an amount of nonfederal funds for the Medi-Cal program equivalent to the funds ...
From SB 10: " 100522. (a) The Secretary of California HHS shall apply to the United States Department of HHS for a waiver authorized under Section 1332 of the federal act ... in order to allow persons otherwise not able to obtain coverage by reason of immigration status ... (e) ... The department shall maximize federal financial participation in implementing this section to the extent allowable."
This is one piece of the puzzle to the backdoor in Obamacare to provide healthcare insurance to illegal aliens and the California Legislature's goal of achieving this.
No health insurance of illegal aliens. No more burdens on the taxpayers!
Enough is enough!
Tell the state legislature and Governor Brown: