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California voters approve Proposition 35, a tax on health care plans to fund Medi-Cal

Proposition 35
Proposition 35 02:12

Voters have approved Proposition 35, a ballot measure that aims to increase funding for Medi-Cal services relied on by millions in the state.

The measure makes permanent a tax on certain managed health insurance plans, such as Kaiser Permanente. Currently, the tax is slated to expire at the end of 2026.

The measure also requires revenues to be used for certain Medi-Cal services, including primary and specialty care, mental health and prescriptions.

According to an analysis by the nonpartisan Legislative Analyst's Office, the measure is expected to raise roughly $2 billion to $5 billion annually.

More than 15 million Californians are enrolled in Medi-Cal, which serves low-income people. 

Proposition 35 is an initiative statute which was placed on the ballot after supporters gathered enough signatures.

The measure is supported by the California Medical Association, the American Academy of Pediatrics, Planned Parenthood and other groups, according to the Secretary of State's office. Both the California Democratic Party and California Republican Party have also endorsed Proposition 35.

Proposition 35 is opposed by the League of Women Voters along with the editorial boards of the Los Angeles Times, San Francisco Chronicle and the San Diego Union Tribune. Opponents of the ballot measure did not submit an argument for the Secretary of State's Official Voter Information Guide.

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