California’s Four Largest Health Plans Could Owe State $10 Billion in Back Taxes
Even though the state could reap a huge windfall if the four health plans lose the case, Gov. Brown’s administration has sided with the plans, arguing that the 1968 case is being misapplied and that the state Legislature long ago determined these plans should be separately taxed and regulated. The lawsuit, the state’s attorneys warn, could disrupt California’s health care delivery system and cause consumers’ premiums to soar.