Signed by Governor Arnold Schwarzenegger

Vote Smart's Synopsis:

Vote to pass a bill that applies the gross premiums tax to all Medi-Cal managed care plans and increases premiums for families enrolled in the Health Families Program with annual household incomes between 150 and 250 percent of the federal poverty level.

Highlights:

-Expands the tax imposed on annual gross premiums of insurers in the state at a rate of 2.35 percent, as provided by the state constitution, to include the premiums of all Medi-Cal managed care plans until January 1, 2011 (Sec. 5). -Requires Medi-Cal managed care plans to make prepayments equal to 25 percent of the gross premiums tax on April 1, June 1, September 1, and December 1 of each year the tax is due, and specifies that no prepayment is required prior to the effective date of this Act (Secs. 13 & 15). -Appropriates the revenue derived from the imposition of the gross premiums tax on all Medi-Cal managed care plans as follows (Sec. 5):

-61.59 percent for the Managed Risk Medical Insurance Board for the Healthy Families Program; and -38.41 percent for the State Department of Health Care Services for the Medi-Cal Program.

-Community Provider Plan: premium is increased from $9 to $13 per child per month, and the maximum per month charge is increased from $36 to $48; and -Family Value Plan: premium is increased from $12 to $16 per child per month, and the maximum per month charge is increased from $36 to $48.

-Community Provider Plan: premium is increased from $14 to $21 per child per month, and the maximum per month charge is increased from $36 to $48; and -Family Value Plan: premium is increased from $17 to $24 per child per month, and the maximum per month charge is increased from $51 to $72.

Full Bill Text