California Assembly Republican Caucus
Republicans warn the newly enacted MCO tax will cost the typical family roughly $425 a year in higher healthcare premiums.
SACRAMENTO — Assembly Republicans are urging the Trump Administration to deny federal approval of California’s newly enacted “Healthcare Premium Tax” (MCO tax). Republicans warn the new tax on health coverage will drive up premiums for families, workers, and small businesses across the state.
“This new Healthcare Premium Tax is a wolf in sheep’s clothing,” said Assemblyman Carl DeMaio. “Newsom and Sacramento Democrats blew billions, can’t balance a budget, and now they want working families to pay the price with another $425 in higher healthcare costs. Californians are already struggling to afford coverage—the last thing they need is another backdoor tax hike from Sacramento.”
In a letter to HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Dr. Mehmet Oz, the members argue the tax, $8.85 per enrollee each month on commercial, Medicaid, and ACA plans, will be passed on to consumers, adding roughly $425 a year for a typical family.
The concern isn’t partisan. Democratic legislators have called the plan “extremely problematic,” and California Medical Association President Dr. René Bravo said it “is simply robbing Peter to pay Paul.”
The tax cannot be collected until the federal government signs off on it.
Assembly Republicans are urging CMS to deny that approval. The letter to the Trump Administration can be viewed HERE