California Politicians Cry Foul Over Newsom’s Move To Drive Healthcare Costs Even Higher
Independent California Rep. Kevin Kiley criticized Democratic Gov. Gavin Newsom on Wednesday for recently approving a healthcare tax hike that he says will impose high cost burdens on residents across the state.
Independent California Rep. Kevin Kiley criticized Democratic Gov. Gavin Newsom on Wednesday for recently approving a healthcare tax hike that he says will impose high cost burdens on residents across the state.
California state legislators approved a revamped healthcare tax that would impose higher costs on Californians with private insurance to help safeguard billions of dollars in federal Medi-Cal funding, CalMatters reported on June 18. If finalized by President Donald Trump’s administration, the move could hike annual healthcare premiums by roughly $400 for a family of four, according to the outlet.
“They are imposing this new tax that’s gonna raise people’s healthcare premiums hundreds of dollars,” Kiley told the Daily Caller News Foundation in an interview on Wednesday. “What’s even worse is that this is something that the voters have explicitly said the state isn’t allowed to do. So it violates, at the very least, the spirit of … Proposition 35, which is passed by the voters. So we are encouraging the Federal Department of Health and Human Services (HHS) to stop this tax from going into effect.”
“This is not something that people in our state can afford,” he continued.
Newsom signed California’s 2026-2027 state budget into law on June 29 in an effort to enact “a balanced spending plan that protects Californians today while strengthening the state’s long-term fiscal future,” according to a news release.
When reached for comment, Newsom’s office referred the DCNF to the California Department of Finance (DOF).
“It’s the Trump administration that was advocating for H.R.1 in the first place, which is what necessitated this change,” California DOF Deputy Director of Legislation Christian Beltran told the DCNF in a statement. “We hope and expect it will be approved by the federal government. Specifically, the MCO Tax authorized by Chapter 24, Statutes of 2026 (SB 125), conforms with new federal requirements in H.R. 1. The tax is structured to apply uniformly across both Medi-Cal managed care plans and commercial plans, as required by H.R. 1.”