health
6/27/2026
Pending Review

California lawmakers approve health‑insurance tax hike amid budget shortfall

California lawmakers approve health‑insurance tax hike amid budget shortfall
AI-Generated Summary

The California Assembly voted to extend and increase a tax on employer‑sponsored health insurance plans, generating an estimated $1.5 billion in revenue to offset cuts to the state’s Medicaid program and other safety‑net services. Lawmakers say the measure will help preserve federal funding and balance the state budget. Critics, including health‑care providers and some consumer groups, warn the tax could be passed on to workers as higher premiums, calling it a “rob Peter to pay Paul” approach. The package also includes a new sales tax on digital software, reflecting Governor Newsom’s broader effort to raise revenue without raising income taxes.

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Sources

California is getting ready to increase a health insurance tax. Will it affect your premium?

www.latimes.com
50%

To help fund the safety net, lawmakers have voted through a health tax extension that could increase premium costs for ...

Calmatters: California Is Getting Ready To Increase A Health Insurance Tax. Will It Affect Your Premium?

www.sfgate.com
50%

"Raising health insurance premiums to help balance the state budget is simply robbing Peter to pay Paul," said Dr. Rene Bravo ...

California lawmakers to vote on tax increases affecting health insurance and digital software

www.msn.com
50%

California lawmakers are set to vote tomorrow on two tax increases, including higher taxes on health plans and a new sales ...

California is getting ready to increase a health insurance tax. Will it affect your premium?

www.msn.com
50%

A balance act: To help fund the safety net, lawmakers have voted through a health tax extension that could increase premium ...

Californians Left With Surging Health Insurance Premiums Amid Proposed Tax Increase

ijr.com
50%

California state lawmakers on Thursday approved a bill to preserve federal funding for the state’s Medicaid program amid ...

Assembly Democrats unite to tax software, health plans in revenue-raising package

www.msn.com
50%

There was no sign of fissures in the supermajority Monday night as the California Assembly moved taxes backed by Newsom and ...

Amid slew of corporate tax ideas, Newsom chose one likely to hit people's premiums

www.msn.com
50%

Unions and lawmakers pushed to backfill federal cuts off corporate coffers. Leaders are instead coalescing on an employer health plan tax ...

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