Newsom to Keep Pushing Managed-Care Tax After Feds Reject Plan

California will keep trying to win federal approval to renew a tax on managed care organizations that would generate $1.7 billion in funding for Medicaid.

The California Department of Finance expects “no immediate fiscal impact” from the Centers for Medicare & Medicaid Services’ decision to reject a tax plan the state submitted as a waiver request, spokesman H.D. Palmer said. The administration of Gov. Gavin Newsom (D) will work with the CMS to address the concerns, he said.

“We believe and expect that we can reach an agreement that allows this type of financing to continue,” Palmer said.

The CMS ...