In summary
California’s health care industry is largely united in support of Proposition 35, which would strengthen Medi-Cal by directing money from taxes on health insurance plans.
For the second time this year, California voters are being asked to make major changes to the state’s health care system. Mental health became an issue during the March primary. Today, it’s California’s low-income health care.
Proposition 35 asks voters to commit to: $2 billion and $5 billion annually for Medi-Cal.A state health insurance program for low-income residents and individuals with disabilities. The money would come from an existing tax on health insurance companies, which lawmakers can now use for other purposes.
Gov. Gavin Newsom has not formally opposed the bill, but has expressed concerns about the potential to limit how lawmakers can spend money in the face of a multibillion-dollar state deficit. But supporters of the bill, which includes organizations representing nearly the entire health care industry, are tired of politicians promising to fully fund Medi-Cal but not delivering.
Nearly 15 million Californians, one-third of the state’s population, rely on Medi-Cal. Over the past decade, the state has taken steps to expand access and benefits to our poorest and most vulnerable people.
However, this expansion has not been accompanied by incentives for doctors to see more patients, and the Medi-Cal system is plagued by long wait times and poor outcomes.
Proposition 35 aims to ensure permanent investment in Medi-Cal. A majority of likely voters support the proposal, according to a Public Policy Institute of California poll.
What does Proposition 35 promise?
Payments to doctors and others who serve Medi-Cal patients have not kept pace with state benefit and eligibility expansions. According to Kaiser Family FoundationCalifornia’s reimbursement rate ranks it among the third lowest state Medicaid systems.
Prop. 35 would appropriate a large portion of the state’s managed care organization tax — or MCO tax — Increase fees for certain health care providers to improve access to care.
Taxing health insurance is based on a long-standing agreement with the federal government. Health insurance companies agree to put tax dollars into the Medi-Cal system in order to receive a dollar-for-dollar match from the federal government. California has levied taxes on health insurance companies off and on for the past 20 years, but has not specified how the money will be used.
Some of the winners who could see higher pay if Prop. 35 passes include physicians and certain specialists, behavioral health facilities, outpatient clinics, hospitals, ambulance crews, and residents.
What will happen to the national budget?
Medi-Cal gets about $35 billion from California’s general fund, and the state currently uses about $35 billion. $7 billion from MCO tax For that program. Mr. Newsom and lawmakers agreed in this year’s budget to use some of the tax money to pay for some rate hikes and expansions, but those aren’t necessarily the rate hikes that the bill’s supporters want.
If voters approve Proposition 35, the state would face a $2.6 billion deficit in its current budget because the ballot measure would redirect funds to other things. That deficit is expected to rise to $11.9 billion over the next three budget cycles, according to a Treasury analysis.
Lawmakers do not have to address the shortfall until next June’s budget deadline. However, the bulk of the MCO tax will no longer be available for general government spending.
Among the rate increases that would be canceled if the proposal passes are air ambulances, pediatric and adult day services, congregate living medical facilities, private on-call nursing, and continued medical insurance for children under 5. Included.
Who supports it?
A broad healthcare coalition supports Proposition 35, including doctors, hospitals, dentists, community clinics, emergency responders, and family planning.
Supporters have raised more than $55 million, with the largest donations coming from the California Hospital Association, California Medical Association and ambulance company Global Medical Response.
They argue that without serious investment, Medi-Cal patients will continue to receive care in a second-tier system that lacks doctors to meet their needs.
Campaign co-chair Jodi Hicks, president of Planned Parenthood Affiliates of California, said in a campaign statement: 35 are now desperately needed to address the medical crisis facing millions of patients. We are confident voters will pass this bill to address our most urgent health care priorities. ”
Who is against it and why?
Proposition 35 supports a small but growing group of community health advocates and medical providers, including the California Pan-Ethnic Health Network, the Children’s Partnership, and the California Law and Western Center on Poverty and Disability Rights. is opposed by a group of
They acknowledge that providers will need to pay more for services, but argue that the proposal could backfire and cause Medi-Cal to lose billions in federal funding. There is. This is because the state of California was disciplined by the federal government for exploiting a loophole in its tax law. If the proposal passes, opponents say it would be extremely difficult for states to change how they fund Medi-Cal.
“The end result is that if the federal government makes good on its promise to change the rules around this tax, the revenue from this tax will be dramatically reduced, leaving billions of dollars behind.”Kiran Savage he said. – Mr. Sangwan, Executive Director of the California Pan-Ethnic Health Coalition
Supported by the California Healthcare Foundation (CHCF). The foundation works to ensure people have access to the care they need, when they need it, at an affordable price. For more information, please visit www.chcf.org.
