After it was approved by Gov. Jerry Brown (D) as part of his budget, the proposal was under review for roughly two months. It was passed by state legislators in February, according to the report.
The new tax replaces an older version that only taxed plans with Medi-Cal patients. Federal officials required the state to expand the tax to all health plans or it would revoke its $1 billion in federal matching funds, according to the report.
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