SACRAMENTO, Calif. -- The Trump administration says it will not allow California to collect a key health care tax on managed care organizations, a decision that could cost the state nearly $2 billion a year for low-income benefits. “The Administration will continue its ongoing discussions with federal Medicaid officials on this issue,” Palmer said. The tax applies to managed care organizations that administer California's Medicaid plans, the joint state and federal program that provides health benefits for the poor and people with disabilities. “For me, the bigger question is how (are) the Newsom administration and the Trump administration going to find a way to work together that doesn't cause harm to the people here who depend on these programs?” Baackes said. The Centers for Medicare and Medicaid Services says it won't allow the tax because it only applies to managed care organizations that receive Medicaid payments.

Source: ABC News February 01, 2020 03:11 UTC