NOVEMBER 2024 VOTER GUIDE
YES ON PROP 35
Managed Care Organization Tax Authorization Initiative
ENDORSE-O-METER SAYS: STRONG YES
Proposition 35 would permanently secure the revenues from a tax on health insurance providers like Anthem Blue Cross and L.A. Care based on monthly enrollees, designating how the money generated by it can be used. It’s a bipartisan effort to ensure that Governor Newsom and the Legislature cannot use funds dedicated to Medi-Cal for other budgetary purposes, and comes as California lawmakers have expanded the pool of people eligible for Medi-Cal. We’re voting yes on Prop 35 because it will help ensure adequate funding for an expanding pool of Medi-Cal participants and ensure that funding is spent for that purpose.
The Context
The California State Legislature recently expanded Medi-Cal, the state’s Medicaid program, to cover people regardless of immigration status. That means that in 2024, 700,000 people became eligible for coverage. The Managed Care Organization Provider (MCO) tax central to Prop 35 is huge—it would generate $35 billion over the next four years. This measure locks that money into only going into Medi-Cal, instead of being used by the state to cover budget deficits elsewhere. It’s good timing, because it ensures the state can cover all those new recipients.
To make sure it’s difficult for lawmakers to reallocate the funds, Prop 35 would require at least three-quarters of members from the State Assembly and State Senate to amend the measure in the future. It would also set up a new committee that would advise the Department of Health Care Services on efforts supported by the tax money, which would include people representing physicians, hospitals, clinics, organized labor and other groups involved in healthcare.
The Money
A total of $17.23 million has been raised to support this measure. Top donors are health care industry groups such as Global Medical Response, Inc. with $5 million, California Hospitals Committee on Issues (CHCI) Sponsored by California Association of Hospitals and Health Systems (CAHHS) with $2 million and the California Medical Association with $3.2 million.
Additional Details
This measure has bipartisan support—hard to come by these days.
Support & Opposition
Almost $50 million has been raised to support Prop 35—while nothing has been raised to oppose it. Top donors to Prop 35 include healthcare industry groups such as Global Medical Response Inc. with $9 million, California Hospitals Committee on Issues sponsored by California Association of Hospitals and Health Systems with $15 million, and the California Medical Association with $8.3 million. In addition, local Planned Parenthood committees have contributed more than $1 million combined.
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