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Proposition 35, a ballot measure aimed at providing permanent funding for Medi-Cal health care services in California, passed Tuesday night.
Prop. 35 will make the existing state tax on health insurance plans permanent, and would use that revenue to fund Medi-Cal services. Currently, the state’s tax is set to expire at the end of 2026.
The short-term state costs are estimated to be roughly between $1 billion and $2 billion annually to increase funding for certain health programs. The long-term costs aren’t known at this time.
Supporters of Prop. 35 said it addresses California’s urgent healthcare crisis by securing dedicated funding to protect access to primary and specialty care, hospitals, community clinics, ERs, family planning, and mental health providers. They also said it prevents the state from redirecting funds for non-healthcare purposes.
There was no stated opposition to Prop. 35 on the ballot. However, critics said Prop. 35’s reliance on federal approval for matching funds is concerning because changes to federal policy could impact future funding for Medi-Cal.
The Associated Press declared that Prop. 35 passed just over an hour and a half after polls closed at 8 p.m. in California.