Doctors and Insurers Sue to Block California's New Health Tax, Citing Voter Limits
An unusual coalition of doctors and health insurers has sued the California state government, arguing that a new health plan tax violates Proposition 35, a 2024 voter-approved initiative. The tax, signed by Gov. Gavin Newsom, aims to replace federal funding lost due to new federal restrictions, but critics warn it will raise premiums by $100 per person annually. The state defends the measure as necessary to maintain Medi-Cal funding, while opponents claim it shifts costs to private insurance holders.