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KFF Health News

California’s Proposition 35 would use tax on managed-care plans to fund health care for low-income residents

KFF Health News
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Ruben Navarrette : Proposition 35 would create a dedicated stream of funding to provide health care for California 's low-income residents.

He says the measure would use money from a tax on managed-care health plans to hike the pay of Medi-Cal providers.

But opponents say that if Proposition 35 passes, the patients, workers, and programs they care about could lose millions of dollars included for them in this year ’s state budget.

California ’s managed-care tax comes from a levy imposed on health plans, based on monthly numbers of both Medi-Cal and commercial insurance enrollees.

The tax, which California has had in some form since 2009 , must be renewed and federally approved every three years .

Proposition 35 sets specific dollar amounts through 2026 , which are based on the federal government last year .