California confronts potential tax backlash over migrant healthcare costs

California is proposing a health-plan tax increase to fund Medi-Cal amid rising costs, including billions spent on healthcare for undocumented immigrants. The new tax, set to begin in 2027 if federally approved, could raise insurance premiums for private plan customers by about $400 annually for a family of four. The measure faces lawsuits from medical and insurance groups over legal violations, while officials argue it complies with state law, despite concerns that consumers will bear the financial burden.

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