Bill > AB83

This bill, titled "Public health: Medi-Cal managed care plan taxes," aims to impose a sales tax on Medi-Cal managed care plans and make other related changes to tax laws. Specifically, it introduces a new article to the Revenue and Taxation Code that defines "Medi-Cal managed care plan" and establishes a 3.9375 percent sales tax on their "gross receipts," which are defined as premium or capitation payments received for health care services. The bill also modifies existing tax provisions related to insurers to include Medi-Cal managed care plans, outlines procedures for tax collection and administration by the State Board of Equalization, and designates that the tax revenue will be deposited into the Children's Health and Human Services Special Fund to support managed care rates for vulnerable populations within the Medi-Cal program. Furthermore, the bill includes provisions for the implementation of these taxes, contingent on federal approval and participation, and sets an operative period from July 1, 2012, to July 1, 2016, with a repeal date of January 1, 2017. It also makes an appropriation for the Healthy Families Program and declares an urgency clause to allow for immediate effect.