Sacramento to Take $10 Billion From Health Care to Waste on Bike Paths, Trains and Unions

If Guv Brown gets his way Kaiser Permanente, Anthem Blue Cross, Blue Shield of California, and Health Net will take $10 billions from health care and get it for his choo-choo train and other union/crony capitalists pay offs. He wants you to pay more for health care, get less health care and worse health care. If he gets the special tax money, health care in California will over night become a disaster—nothing short of literally killing off people.

“The crux of the issue is a 2.35% tax on annual premiums that insurers pay in lieu of almost all other state taxes. The health plans are accused of having managed to avoid paying that premium tax on the majority of their business.

So if the case were to go against the health plans, back taxes and future enforcement would total billions. $10 billion or so in back taxes and an estimate of roughly $1 billion annually going forward.

Hospitals do not pay taxes–patients and government do. Insurance companies will have to raise rates, even the extremely expensive ObamaCare will go up. Sacramento and Brown are doing all they can to assure the people of California are sick.

Jerry Brown state of the state

Lawsuit Pins $10 Billion in Back Taxes on Large Health Plans

California County News, 1/27/16

Kaiser Permanente, Anthem Blue Cross, Blue Shield of California, and Health Net are the subject of what State Senator Bill Monning called, “a monumental case for California and Californians.”

The crux of the issue is a 2.35% tax on annual premiums that insurers pay in lieu of almost all other state taxes. The health plans are accused of having managed to avoid paying that premium tax on the majority of their business.

So if the case were to go against the health plans, back taxes and future enforcement would total billions. $10 billion or so in back taxes and an estimate of roughly $1 billion annually going forward.

Making the case more interesting, Governor Brown’s administration has sided with the health plans, saying the 1968 case that the plaintiffs are using as their main weapon is being misapplied. The health plans say they offer “health care service plans” and further contend that those are different from “insurance plans.” Hooray for legalese.

The four plans being targeted make up over two-thirds of the state’s health insurance market by revenue.

More on this lawsuit can be found here.

 

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.