Doctors, insurers sue Newsom over health insurance premium increases

Doctors and health insurers have sued California Gov. Gavin Newsom and the state Legislature, arguing that a newly approved healthcare tax violates a voter-approved 2024 law.The lawsuit challenges the Managed Care Organization tax, which plaintiffs say circumvents Proposition 35’s limits on healthcare taxes and requirements for how the revenue is used.Health insurers warn that the higher tax could raise premiums by about $100 per person annually, potentially adding roughly $400 a year for a family of four.The Newsom administration says the tax is needed to help fund healthcare and offset major federal cuts to Medi-Cal, California’s public health insurance program...