California voters give Medi-Cal doctors a raise by passing Prop. 35
This article is part of a partnership between the Mendocino Voice and nonprofit newsroom CalMatters to bring relevant nonpartisan news to
Supporters of the measure, which includes nearly the entire health care industry, have long argued that the tax revenue comes from health care and should be reinvested in the state's health care system.
"Prop 35's victory on the ballot is a victory for patients across
Nearly 15 million Californians, a third of the state's population, rely on
That expansion, however, has not come with incentives for doctors to see more patients, and the
Opponents of the measure, who were mostly small community providers and disability advocates, warned that Prop. 35 would restrict
"Today's vote makes clear that Californians support the
What does Prop. 35 promise?
Payments to doctors and others who serve
Prop. 35 earmarks a majority of the state's Managed Care Organization Tax — or MCO Tax — to raise rates for certain providers in an effort to improve access to health care.
The tax on health plans comes from a long-standing agreement with the federal government: Health insurers agree to put tax money into the
Some of the winners who will see better pay if Prop. 35 passes include doctors and certain specialists, behavioral health facilities, outpatient clinics, hospitals, ambulances and doctors-in-training.
What happens to the state budget?
Since voters approved Prop. 35, the state will face a
Lawmakers won't have to address the shortfall until next year's budget deadline in June. But, the majority of the MCO tax would no longer be available for general government spending.
Some of the rate increases that would be canceled if the proposition passes include ones for air ambulances, pediatric and adult day services, congregate living health facilities, private duty nursing and continuous
Who supported it?
A broad health care coalition that includes doctors, hospitals, dentists, community clinics, emergency responders and
Supporters raised more than
They argue that without a serious investment,
Who opposed it and why?
Prop. 35 was opposed by a small group of community health advocates and
They acknowledged that providers needed to be paid more for their services, but argued that the proposition could backfire and cause
After the measure passed, opponents said the state must be transparent in how it spends the special tax revenue and consult with communities that rely on
"In the longer-term, state leaders will face the challenge created by capping federal revenues under Prop. 35. Fully funding
Newsom did not formally oppose the measure, but he previously voiced concerns about its potential to restrict how lawmakers spend money while facing down a multibillion-dollar state deficit.
Supported by the
This article originally appeared in CalMatters here.
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