Public health: managed care plan taxes.

(1) Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which health care services are provided to qualified, low-income persons. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Under existing law, one of the methods by which Medi-Cal services are provided is pursuant to contracts with various types of managed care plans. Existing law imposes various taxes, including a tax at a specified rate on the gross premiums of an insurer, as defined, and, until July 1, 2011, on the total operating revenue, as specified, of a Medi-Cal managed care plan, as defined. Existing law continuously appropriates the revenues derived from the tax on Medi-Cal managed care plans for specified purposes. This bill would extend the imposition of the tax on the total operating revenue of Medi-Cal managed care plans until July 1, 2012, and would make other conforming changes. This bill also would authorize the Controller to loan funds in the Children's Health and Human Services Special Fund to the General Fund, as provided. By extending the imposition of a tax whose revenues are continuously appropriated, this bill would make an appropriation. (2) Existing law requires, until July 1, 2011, every return required to be filed with the Insurance Commissioner pursuant to provisions governing taxes on the total operating revenue of Medi-Cal managed care plans to be signed by the insurer or the Medi-Cal managed care plan or an executive officer of the insurer or the plan and to be made under oath or contain a written declaration that is made under penalty of perjury. This bill would instead require every return required to be filed with the Insurance Commissioner pursuant to provisions governing taxes on the total operating revenue of Medi-Cal managed care plans to be made under oath or contain a written declaration that is made under penalty of perjury until July 1, 2012. By expanding the crime of perjury, this bill would impose a state-mandated local program. (3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (4) This bill would provide that this act would become operative only if specified events relating to the Healthy Families Program and the Managed Risk Medical Insurance Board do not occur, and, if operative, would provide an exemption from the tax for Medi-Cal managed care plans if those specified events do occur. This bill would also provide that this act would become inoperative if any of its provisions are amended or repealed. (5) This bill would declare that it is to take effect immediately as an urgency statute.