On Your November Ballot: Prop 35 Would Make an Existing Tax on Managed Health Care Plans Permanent

Edward Henderson | California Black Media(CBM) – Prop 35 would make the state pay doctors more money for treating patients who are covered by Medi-Cal, California’s version of the federal program Medicaid, and fund other health care services, including community clinics, hospitals, ERs, family planning, and mental health providers.Managed care organizations contract with the state to provide these health benefits. The state taxes these organizations to help pay for the Medi-Cal program. This measure would require the state to use a portion of that tax money to increase how much Medi-Cal pays doctors.While Medi-Cal coverage has expanded significantly over the past 10 years, payments to doctors and other providers have not kept pace. According to a report by the& Kaiser Family Foundation, California’s reimbursement rate is in the bottom third nationally. Because of this, many providers won’t treat Medi-Cal patients.Supporters of the proposition argue that tax revenue from the Managed Care Organization Tax (which historically has offset fund spending on Medi-Cal) should be spent for new investments in Medi-Cal rather than the general fund to ensure providers are properly compensated for the expanded services they’re expected to cover. Over the next four years, this tax is projected to generate upwards...