Public health: Medi-Cal managed care plan taxes.

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 a tax on the gross premiums of insurers in lieu of other taxes on insurers, and, until July 1, 2012, imposed a tax on the total operating revenue, of a Medi-Cal managed care plan, as defined. The revenues derived from the tax on Medi-Cal managed care plans are continuously appropriated for specified purposes. This bill would, beginning July 1, 2012, and ending July 1, 2013, impose a tax on the total operating revenue of a Medi-Cal managed care plan, as defined. The proceeds from the tax would be continuously appropriated from the Children's Health and Human Services Special Fund to the State Department of Health Care Services and the Managed Risk Medical Insurance Board for specified purposes. 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. Existing law requires every return required to be filed with the State Insurance Commissioner pursuant to provisions governing taxes on the gross premiums of insurers to be signed by the insurer or an executive officer of the insurer and to be made under oath or contain a written declaration that it is made under penalty of perjury. This bill would also require Medi-Cal managed care plans to file returns with the commissioner under oath or with a written declaration that is made under penalty of perjury. By expanding the crime of perjury, this bill would impose a state-mandated local program. The Sales and Use Tax Law imposes a sales tax on retailers for the privilege of selling tangible personal property at retail, measured by the gross receipts from the sale of tangible personal property sold at retail in this state. A violation of specified provisions of this law is a crime. This bill would, on July 1, 2013, and before July 1, 2016, except if specified contingencies occur as provided, and only if and to the extent that federal financial participation is available and necessary federal approvals have been obtained, impose a sales tax on sellers of Medi-Cal managed care plans for the privilege of selling Medi-Cal health care services at retail, measured by the gross receipts from the sale of those services in this state at a specified rate of those gross receipts, as provided. This bill would specify that a seller is a person or entity that enters into a contract with the State Department of Health Care Services to provide for specified health care services, as provided. This bill would provide for the administration of the tax by the State Board of Equalization. This bill would require all revenues, less refunds, derived from the taxes to be deposited into the Children's Health and Human Services Special Fund. This bill would continuously appropriate the revenues in the fund to the State Department of Health Care Services solely for purposes of funding managed care rates for health care services for children, seniors, persons with disabilities, and duel eligibles in the Medi-Cal program that reflect the cost of services and acuity of the population served. By changing the definition of a crime, the bill would impose a state-mandated local program. This bill would also appropriate $245,000,000 from the Federal Trust Fund to the Managed Risk Medical Insurance Board for the purposes of the Healthy Families Program to be available for expenditure in the 2012–13 fiscal year. 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. This bill would declare that it is to take effect immediately as an urgency statute.