California lawmakers and healthcare field have reached a deal on how they want the state to spend an estimated 19 billion dollars in proceeds.
The proceeds would come from a renewed state tax on healthcare plans plus federal funds. California has levied this tax on health plans three times previously, using the money on the state’s general fund.
Now, much of the revenue will be spent on Medi-Cal, the state’s publicly subsidized healthcare system. The funding will also include money to bolster struggling hospitals, ease workforce shortages, and entice more specialists to see Medi-Cal patients.
Last year, the tax was set to expire with no plan of renewal. Some of the spending will start next year, but the bulk will not start until 2025.
