CAHP Press Release: Governor’s Budget Decision Raises Taxes on Health Coverage for Working Families and Leaves Vulnerable Immigrant Communities Behind

The California Association of Health Plans today issued a statement in response to Governor Newsom’s approval of the 2026-27 State Budget agreement, which includes a $1.5 billion tax increase on commercial health coverage that will raise premiums by more than $400 a year for a family of four. The budget agreement also forces immigrant communities off Medi-Cal Managed Care and into lower-quality fee-for-service, leaving many vulnerable Californians without needed care.

CAHP Press Release: ICYMI – Sacramento Business Journal: Opinion — Managed care tax would raise healthcare costs for California families, small businesses

A new op-ed in the Sacramento Business Journal by Dr. Khuram Arif, President and CEO of Western Health Advantage, raises serious concerns about a $1.5 billion tax on commercial health coverage included in the state budget agreement now before Governor Newsom, warning that it would result in harmful premium increases for Californians and small businesses already struggling with rising costs.

CAHP Press Release: CAHP Warns Assembly-Approved Health Insurance Tax Will Drive Up Consumer Premiums, Urges Senate to Reject Proposal

The California Association of Health Plans today issued a statement in response to the Assembly's passage of the 2026-27 State Budget proposal, which includes Governor Newsom's $1.5 billion tax increase on commercial health coverage and will raise premiums by more than $400 a year for California’s working families.

CAHP Press Release: ICYMI – OC Register: Newsom’s health tax will hurt our small businesses — and may not even be legal

A new op-ed in the Orange County Register by Michael Hedges, president of the California Small Business Association, is sounding the alarm on Gov. Newsom’s proposed $1.5 billion tax on commercial health insurance. The op-ed, published June 11, warns that the proposed managed care organization (MCO) would impose a steep increase on health care premiums for hard working Californians, including small business owners throughout the state.

CAHP Press Release: ICYMI – WSJ: Newsom’s California Health Tax Gambit

The Wall Street Journal editorial board is calling attention to Governor Gavin Newsom’s proposed overhaul of California’s managed care organization (MCO) tax, warning that the plan could increase health insurance premiums for workers, employers and families already struggling with the high cost of living.

CAHP Press Release: ICYMI – POLITICO: The Health Care Tax That Helped Keep California Afloat is Now a Political Minefield for Newsom

Politico CA today highlighted the growing political and public concern surrounding Governor Gavin Newsom’s proposal in the California State budget that would raise premiums on Californians already struggling with high household costs by hundreds of dollars per year.