There is renewed fear that the state may have to shutter the Healthy Families program and remove hundreds of thousands of California children from the health insurance plan (SCHIP).
Apparently, CMS has "determined" that a special tax extension plan adopted by the CA Legislature and signed into law by Gov. Scharzenegger (a 2.35% tax paid BY health insurers) fails to meet the CMS reading of the rules regarding such taxes.
If resolution is not found before the end of 2010, hundreds of thousands of children in California could be removed from the plan.
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