Kristin Olsen: Healthcare financing plan a win for all

As a conservative in California, rarely have I had the opportunity to cut taxes and improve services in state government. Yet, that’s exactly what we’ve done in the Legislature this week through the passage of the Managed Care Organization (MCO) Financing Plan. And every Californian benefits.

In 2014, the federal government ruled that California could no longer receive federal funding to support low-income health insurance by only taxing Medi-Cal plans. Funding would need to come from a broad tax on all health plans. The deadline to submit a new financing plan to Washington D.C. is July 1.

Not surprisingly, Gov. Jerry Brown’s administration and legislative Democrats initially proposed a plan that would have raised health insurance taxes by over $650 million and likely hurt more than 24 million Californians through higher health insurance premiums.

Standing up for our constituents and firm in our principles, my Republican colleagues and I made it clear we would not pass a new tax that would make health care even more expensive in our state.

Nevertheless, instead of just saying no, Assembly Republicans sat down with the governor and an array of stakeholders to develop alternatives. Working together, we successfully negotiated a new MCO Financing Plan that actually results in a $100 million net tax savings.

Under the new structure, people’s health insurance rates will not increase from the MCO because health plans are either fully reimbursed with federal funding or receive a net tax benefit through the elimination of other taxes.

In addition, the state saves $1.3 billion, which we are using to pay down long-term debt in transportation and retiree health care, improve services for individuals with developmental disabilities, expand medical residency slots, and improve health care access for the elderly by stabilizing funding for skilled nursing facilities across the state – including ones at our own Emanuel Medical Center in Turlock and Oak Valley Hospital in Oakdale.

In short, the MCO Financing Plan is a great package. Addressing some of California’s most pressing needs, it cuts taxes, reduces state debt, helps the disabled, and preserves access to health care in the San Joaquin Valley and across the State.

The MCO Plan is also an example of the good work that can be achieved when elected officials are willing to set aside partisanship and do what’s right for California. Instead of just saying no, we sat at the table and negotiated a plan to deliver efficient and improved government services while cutting taxes and reducing short and long-term debt.

As your representative, you have my commitment that that will continue to be my goal – delivering results while remaining true to my principles and Valley priorities.

This story was originally published March 1, 2016 at 9:12 AM with the headline "Kristin Olsen: Healthcare financing plan a win for all."