PROPOSITION 35

Provides Permanent Funding for Medi-Cal Health Care Services. 

A YES vote on this measure means: An existing state tax on health plans that provides funding for certain health programs would become permanent. New rules would direct how the state must use the revenue.

A NO vote on this measure means: An existing state tax on health plans would end in 2027, unless the Legislature continues it. The new rules would not become law.

No cost to tax payers. Makes permanent the existing tax on managed health care insurance plans, which, if approved by the federal government, provides revenues to pay for Medi-Cal health care services like primary and specialty care, emergency services, family planning, mental health and prescription drugs.

HOW IT WORKS

State Charges a Specific Tax on Health Plans. Since 2009, California typically has charged a specific tax on certain health plans, such as Kaiser Permanente. This tax is called the Managed Care Organization Provider Tax (“health plan tax”). The tax has worked differently over time. Currently, it charges plans based on the number of people to whom they provide health coverage, including those in Medi-Cal. The tax rate is higher for those in Medi-Cal compared to other kinds of health coverage. (Medi-Cal is a federal-state program that provides health coverage for low-income people. The federal government and the state share the cost of the program. By charging the health plan tax, the state can receive more federal funding.)

FUNDS FROM PROP 35 ARE DEDICATED TO THIS SERVICES AND PREVENTS THE STATE FROM REDIRECTING FUNDS OUTSIDE OF HEALTH CARE SERVICES.

• Improved health care services for 15 million Medi-Cal patients
• Expanded access to preventative health care
• Reducing wait times in emergency rooms
• Primary care physicians
• Community health centers
• Specialty care like cancer, cardiology and OB/GYN
• Family planning
• Hiring more first responders and paramedics to reduce emergency response times
• Expanded mental health treatment
• Health care workforce training to address worker shortage