A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape and a field of red dollar symbols are collaged to the left of the building.

Proposition 35

Should California make permanent an existing tax on health insurance companies and restrict how those funds can be used? 

Since 2005, California has taxed managed-care organizations (MCOs) — otherwise known as health plans, like Anthem Blue Cross and Kaiser Permanente — to help shore up funding for Medi-Cal, the state’s insurance program for lower-income residents. The tax is set to expire in 2026. The proposition would make the MCO tax permanent and restrict California lawmakers from reallocating those funds. The tax is expected to generate $7 billion to $8 billion annually.

Yes Argument

About 2 in 5 Californians rely on Medi-Cal for their health care, yet they often wait months to see a specialist; not all physicians accept Medi-Cal patients and they are reimbursed lower rates for services. Proposition 35 is intended to alleviate inequity without raising rates for consumers. The proposition will use the existing MCO tax to ensure permanent increased funding for Medi-Cal payments including hospitals and ambulance services. The proposal will prevent the state from redirecting revenue from this tax for non-health care purposes.

No Argument

This tax will do more harm than good because the legislation will roll back investments in community health workers, community behavioral health, services that support seniors with Alzheimer’s, and funding to ensure young children are covered by Medi-Cal.

Fundraising
Campaign finance data comes from the California Secretary of State’s office or the Federal Election Commission.

Updated at 6:00 PM PT on Sep 30, 2024
Source: California Secretary of State
In Support
$48.8mTotal
California Association of Hospitals and Health Systems
$15.0m
Global Medical Response, Inc.
$13.0m
California Medical Association
$10.3m
California Primary Care Association
$1.0m
In Opposition
$0Total

Key Supporters

This list represents notable organizations and individuals who have taken a position on the ballot measure or candidate, or who are funding campaigns in support or opposition. This list is not exhaustive, and may be updated.

In Support

  • California Democratic Party 
  • California Hospital Association
  • California Medical Association 
  • California Republican Party
  • Emergency responder and community health centers 
  • Labor unions
  • Planned Parenthood Affiliates of California

In Opposition

  • The California Pan Ethnic Health Network (CPEHN)
  • The Children’s Partnership
  • California Alliance of Retired Americans (CARA)
  • Courage CaliforniaLeague of Women Voters of California

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