A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape and a field of red dollar symbols are collaged to the left of the building.

Proposition 35

Should California make permanent an existing tax on health insurance companies and restrict how those funds can be used? 

Since 2005, California has taxed managed-care organizations (MCOs) — otherwise known as health plans, like Anthem Blue Cross and Kaiser Permanente — to help shore up funding for Medi-Cal, the state’s insurance program for lower-income residents. The tax is set to expire in 2026. The proposition would make the MCO tax permanent and restrict California lawmakers from reallocating those funds. The tax is expected to generate $7 billion to $8 billion annually.

Yes Argument

About 2 in 5 Californians rely on Medi-Cal for their health care, yet they often wait months to see a specialist; not all physicians accept Medi-Cal patients and they are reimbursed lower rates for services. Proposition 35 is intended to alleviate inequity without raising rates for consumers. The proposition will use the existing MCO tax to ensure permanent increased funding for Medi-Cal payments including hospitals and ambulance services. The proposal will prevent the state from redirecting revenue from this tax for non-health care purposes.

No Argument

This tax will do more harm than good because the legislation will roll back investments in community health workers, community behavioral health, services that support seniors with Alzheimer’s, and funding to ensure young children are covered by Medi-Cal.

Fundraising
Campaign finance data comes from the California Secretary of State’s office or the Federal Election Commission.

Updated at 6:00 PM PT on Sept 12, 2024
Source: California Secretary of State
In Support
$48.4mTotal
California Association of Hospitals and Health Systems
$15.0m
Global Medical Response, Inc.
$13.0m
California Medical Association
$10.3m
Multiple Donors
$1.0m
In Opposition
$0Total

Key Supporters

This list represents notable organizations and individuals who have taken a position on the ballot measure or candidate, or who are funding campaigns in support or opposition. This list is not exhaustive, and may be updated.

In Support

  • California Democratic Party 
  • California Hospital Association
  • California Medical Association 
  • California Republican Party
  • Emergency responder and community health centers 
  • Labor unions
  • Planned Parenthood Affiliates of California

In Opposition

  • None

More Statewide Propositions

A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape is collaged to the left of the building.

Prop 2: School Bond

Should California issue $10 billion in bonds to help build or upgrade educational facilities?

A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape is collaged to the left of the building.

Prop 3: Same-Sex Marriage

Should marriage rights for same-sex couples be enshrined in the state constitution?

A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape is collaged to the left of the building.

Prop 4: Climate Bond

Should California issue $10 billion in bonds to fund various climate- and environment-related projects?

A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape is collaged to the left of the building.

Prop 5: Housing Votes

Should California reduce the vote threshold needed to pass certain local bonds for affordable housing and public infrastructure projects?

A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape is collaged to the left of the building.

Prop 6: Prison Labor

Should California ban involuntary servitude in prisons and jails? 

A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape is collaged to the left of the building.

Prop 32: Minimum Wage

Should all California employees earn at least $18 per hour by Jan. 1, 2026?

A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape is collaged to the left of the building.

Prop 33: Rent Control

Should California remove limits on the ability of cities to impose rent control policies capping annual rent increases?

A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape is collaged to the left of the building.

Prop 34: Prescription Drug Spending

Should California restrict how certain health care providers can spend revenue from prescription drug sales?

A black and white mid-rise apartment building is pictured at three-quarters view, revealing a pink side wall with a medical cross symbol on it. A small blue shape is collaged to the left of the building.

Prop 36: Criminal Penalties

Should California roll back past reforms and make it easier to charge people with felony crimes and send them to jail or prison if they repeatedly shoplift, or possess some drugs, including fentanyl and methamphetamine?