What is Proposition 35? See California measure focused on health insurance

FRESNO, California – California voters will consider passing a permanent health care tax in November. Proposition 35 would authorize the state to maintain a tax on some managed health insurance plans, such as Kaiser Permanente.

“This money will go toward the Medi-Cal program in California,” Justin Preas said. He directs United Health Centers of the San Joaquin Valley.

Preas said using tax revenue to fund Medi-Cal helps ensure low-income Californians can get the health care they need. Proposition 35 could impact many of its 175,000 patients.

“We especially serve people in need in our communities,” Preas said. “So, patients who are on Medi-Cal. Patients who don’t have insurance.”

The tax on managed care plans began in 2009 but was never permanent. The state legislature re-approves it every few years.

Supporters say the dedicated tax — and Proposition 35 — means the state doesn’t need to take Medi-Cal money out of the general fund and keep it for other uses.

But some citizens have concerns.

“Proposition 35 makes it much more difficult for children, like my son, to access home care,” said Jenny McLelland.

Her 13-year-old son receives nursing care at home, where he uses a ventilator at night. This keeps him out of the hospital, which McLelland says allows him to focus on being a kid.

“Proposition 35 locks Medi-Cal rates for home nursing care at the low levels that make it so difficult for families like mine to work,” McLelland said.

There is no stated opposition to Proposition 35 on the ballot, but McLelland worries that the proposal will focus too much on hospital care and not fund the type of home care her son needs.

“California needs to fund the systems that keep people with disabilities safe and healthy at home,” McLelland said.

A recent estimate predicts that Proposition 35 would bring between $7 billion and $8 billion annually to the state. Officials like Preas say they desperately need that money for health facilities.

“Many will be directed toward patient care,” Preas said. “Provide levels of revenue and reimbursement so that our providers in the state can afford to provide these services to patients.”

If Proposition 35 fails and the tax does not become permanent, the state legislature could vote to temporarily extend it when the current tax expires in 2027.

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