For years, the state has conducted something of a shell game to help finance Medi-Cal, its health insurance system for the poor that now covers nearly a third of Californians.
California imposed a special tax on “managed care organizations” that handle Medi-Cal recipients and used it to qualify for additional federal funds. The insurers got back all of their tax money and then some, and the state general fund gained additional money for other uses. Read the full Sacbee article here.
