Proposition 35 – MEDI-CAL Funding

Background

This measure would make permanent the existing tax on managed health care insurance plans, currently set to expire in 2026, which the state uses to pay for health care services for low-income families with children, seniors, people with disabilities, and other groups covered by the Medi-Cal program. It would require revenues to be used only for specified Medi-Cal services, including primary and specialty care, emergency care, family planning, mental health, and prescription drugs. It also prohibits revenues from being used to replace other existing Medi-Cal funding and caps administrative expenses and requires independent audits of programs receiving funding.