For years, the four major California health carriers – Health Net, Kaiser, Blue Shield and Anthem Blue Cross – have either partly or completely avoided the mandatory 2.35% state premium tax on collected premiums. The companies claim to be “health service plans” because doctors are required to assume financial risk and that they are nothing like CIGNA or Aetna. Uh huh…needless to say health care and consumer advocates disagree (if it walks like a duck, etc)
There is now a court case to bring the carriers to task…with the suit just being heard at the end of January. Governor Brown’s administration, however, has sided with the plans in this case, despite his pledge to continue balancing the budget.