Proposition 35, one of 10 propositions coming to the California ballot this November, would provide permanent funding for Medi-Cal health care services by making the already-existing tax on health care plans permanent. 

Prop 35 will not raise taxes for those who have managed health care plans, as the tax already exists and would expire at the end of 2026. It would instead make the tax permanent, and the only entity who would need to approve it on a regular basis would be the federal government.

“Yes on 35 addresses our urgent healthcare crisis by securing dedicated funding — without raising taxes — to protect access to health providers,” the pro-argument of the California voter guide stated.

Currently, the state legislature decides where the revenue from these taxes will go.

Prop 35 would change that, requiring all the revenue from this tax to be used on specific Medi-Cal services, “including primary and specialty care, emergency care, family planning, mental health and prescription drugs.” 

Prop 35 is supported by Planned Parenthood and the California Medical Association.

There was no argument submitted against Prop 35 in the California voter guide.

The legislative analyst in the California voter guide estimated Prop 35 to cost an annual $1 to $2 billion in 2025 and 2026, respectively. The state will likely have to pull money from the General Fund to make up the difference.

“Prop 35 would increase state costs because it reduces the amount of health plan tax revenue that can be used to help pay for existing costs in Medi-Cal,” the analyst said.

Whether or not Prop 35 passes, the state legislature can still decide to continue the tax in 2027 and submit it to the federal government for approval.

The election will take place on Nov. 5, but ballots began mailing out on Oct. 7 in Butte County. 

Anthony Vasek can be reached at [email protected] and [email protected].