Story perspectives

Insurers Challenge California Managed-Care Tax, Seek $100 Costs Halt

By Drooid · Oct 6, 2026, 4:02 AM UTC · How we work

Summary

Story summary

Governor Gavin Newsom and the California Legislature approved a managed-care organization tax on health plans.
The California Medical Association and the California Association of Health Plans sued, claiming the tax violates Proposition 35.
Insurers estimate the tax will add $100 per person and $400 per family of four to annual premiums.
The suit asks the California Supreme Court to declare the tax invalid and enforce Proposition 35 rules.

1 of 1

Story summary

Governor Gavin Newsom and the California Legislature approved a managed-care organization tax on health plans.
The California Medical Association and the California Association of Health Plans sued, claiming the tax violates Proposition 35.
Insurers estimate the tax will add $100 per person and $400 per family of four to annual premiums.
The suit asks the California Supreme Court to declare the tax invalid and enforce Proposition 35 rules.