CALIFORNIA, USA — Proposition 35 would require the state to spend the money from a tax on health care plans on Medi-Cal, the public insurance program for low-income Californians and people with disabilities.
The revenue would go to primary and specialty care, emergency services, family planning, mental health and prescription drugs. It would also prevent legislators from using the tax revenue to replace existing state Medi-Cal spending. Over the next four years, it is projected to generate upwards of $35 billion.
Earlier this year, Gov. Gavin Newsom proposed using the tax revenue to cover other Medi-Cal program expenses, walking back a deal to support new investments.
Why is it on the ballot?
Lawmakers have dramatically expanded Medi-Cal in the past 10 years to include all low-income residents regardless of citizenship. Benefits have also been restored from Great Recession-era cuts to include dental insurance, hearing aids and doulas. Today, more than 14 million Californians — roughly a third of the state population — use Medi-Cal. Over the same time period, payments to doctors and other Medi-Cal providers have increased only incrementally if at all. According to the Kaiser Family Foundation, California’s reimbursement rate falls in the bottom third nationally. As a result, many providers won’t treat Medi-Cal patients.
The coalition of doctors, hospitals and clinics that gathered signatures to place this issue on the ballot want the tax revenue to go toward increased payments.
For a deeper dive on this ballot proposition, click HERE.
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