Understanding Prop 35's Purpose

Prop 35 seeks to ensure stable funding for Medi-Cal, California’s vital healthcare program for low-income individuals, seniors, and people with disabilities. It aims to make permanent an existing tax on managed healthcare insurance plans, which is crucial for generating revenue that supports medical services through federal matching funds. This proposition has emerged due to concerns over fluctuations in state funding and aims to continue providing essential services to those who rely on Medi-Cal. By creating a stable funding mechanism, Prop 35 intends to incentivize healthcare providers to accept Medi-Cal patients, addressing gaps in service availability caused by historically lower reimbursement rates.