California Republicans ask for Trump administration’s help to stop new tax
More than a dozen Assembly Republicans sent a letter Monday to
“While state officials describe this proposal as a healthcare financing mechanism, its practical effect is a new tax on health plans that will ultimately be passed on to employers, workers, retirees, and families through higher health insurance premiums,” the letter said. “At a time when Californians already face some of the highest healthcare costs in the nation, this proposal will further increase the financial burden on those who purchase private coverage.”
The Governor’s Office and the
Voters two years ago approved a proposition that made the state’s existing tax plan permanent starting in 2027 and changes to how the revenue could be used in both the short and long term.
The new tax is expected to generate several billion dollars a year less than what the state is currently receiving, but more than what the Governor’s Office originally anticipated due to federal and state changes. It would be applied to health insurance plans, though it is likely that insurers that provide the plans would pass at least some of those costs onto customers.
“At a time when Californians are already stretched thin by the rising costs of housing, groceries, childcare, and transportation, adding hundreds of dollars in new health insurance costs is the wrong choice and should be rejected,” Grant said.
Money from the tax is used to pay for costs related to
“Rather than addressing the underlying causes of these escalating costs,
Representatives for the federal health agencies did not respond to requests for comment before Monday evening.
©2026 The Sacramento Bee. Visit sacbee.com. Distributed by Tribune Content Agency, LLC.


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