The California legislature Monday approved a new health care tax, capping a months-long quest to safeguard over $1 billion in annual Medi-Cal funding the federal government had threatened to take away.

Covered California on Wednesday announced it selected VSP Vision Care as its vision insurance provider for adults statewide.

Federal regulators proposed what they said was a slight rise in payments for insurers that offer private Medicare plans, a closely watched figure as this coverage becomes increasingly central to the companies’ business.

The move by insurance companies to sell more HMOs and health plans with narrow lists of medical care providers–particularly on public exchanges under the Affordable Care Act–has doctors calling for state legislation and closer scrutiny of insurer networks by insurance commissioners and the Obama administration.

A $2.4 billion managed-care organization tax package awaiting votes in the California Legislature reflects the heavy imprint of the state’s health insurance industry, which pushed for major changes to avoid any tax hit that could be passed on to customers.

During the two years before the disastrous opening of HealthCare.gov, federal officials in charge of creating the online insurance marketplace received 18 written warnings that the mammoth project was mismanaged and off course but never considered postponing its launch, according to government investigators.