California voters earlier this week overwhelmingly passed Proposition 35, a once-in-a-generation investment in the state’s Medi-Cal program and a permanent commitment to the vulnerable Californians who rely on it for health coverage.
This new law will deliver significant resources to those who care for Californians covered by Medi-Cal: doctors, hospitals, federally qualified health centers, Planned Parenthood clinics, and more. CHA was among the leading organizations that funded and advanced the measure — because hospitals simply cannot continue to care for patients in the way they need without more support.
Starting in 2025, the fee assessed on managed care organizations — now permanent under state law — will support initial Medi-Cal investments of more than $5 billion annually and as much as $11 billion annually over time. In the first year, as much as $1.4 billion will be used to bolster hospital care (when the initiative fully takes effect in 2027, that number could grow to an estimated $2.6 billion), including:
- Emergency department services
- Outpatient services
- Public hospitals
- Graduate medical education
- Inpatient psychiatric care
The success of Prop 35 also demonstrates the power of partnership — that big things can be done to improve health care in California, and that the likelihood of a positive outcome is enhanced when many organizations and voices come together rather than making a solo run.
As these resources begin to flow to health care providers, it will mean better access to health services for the nearly 15 million Californians covered by Medi-Cal, including more than 13 million people of color, more than 5 million children, 2 million seniors and people with disabilities, and more than 5 million non-English speakers.
That’s precisely why so many Californians during this election stood alongside hospitals and the broad, diverse coalition that backed Prop 35.
