A hospital emergency room entrance in San Diego. Photo by Chris Stone The single largest cut in Gov. Gavin Newsom’s latest budget proposal threatens to undo a multibillion-dollar deal he made with health care industry leaders last year to shore up the state’s expansive public insurance program with a new tax. Newsom wants to take $6.7 billion that had been earmarked for increased Medi-Cal payments to health care providers and instead use it to help plug the ballooning state deficit. Providers last year agreed to be taxed to generate that money with the stipulation that it be invested in Medi-Cal, the state’s insurance program for lower-income households. Newsom said his budget
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