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California faces unlikely tax revolt amid billions in illegal immigrant healthcare costs

As California grapples with soaring Medi-Cal costs — including billions spent on healthcare for immigrants without legal status — Gov. Gavin Newsom and Democratic lawmakers have backed a revised health-plan tax in response to new federal restrictions, a move critics warn could shift more costs onto privately insured Californians.

The tax has united an unlikely coalition of doctors and health insurers against him, with critics warning it could make California even more expensive.

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