VOTE YES 

Summary:

Proposition 35 proposes making the existing Managed Care Organization (MCO) tax permanent. The MCO tax is currently applied to managed health care plans to generate funds for the Medi-Cal program, which provides healthcare to low-income Californians. This proposition would direct the funds generated from this tax to increase payments to doctors, hospitals, and healthcare providers who treat Medi-Cal patients. The MCO tax allows California to access federal matching funds, significantly amplifying the resources available to improve healthcare services in the state. Proposition 35 also introduces new oversight and accountability measures to ensure that the funds are used appropriately and for their intended purposes.

Why We Support Proposition 35:

Thrive LA PAC strongly supports Proposition 35 because it secures a reliable funding stream for the Medi-Cal program, ensuring that healthcare providers who serve the most vulnerable populations receive adequate compensation. By making the MCO tax permanent, California can lock in billions of dollars in federal matching funds, which are essential for maintaining and expanding healthcare services to low-income individuals, seniors, and people with disabilities. This helps reduce the financial strain on state resources, as the federal government effectively doubles the state’s investment.

Additionally, Proposition 35 includes important accountability measures—requiring independent audits and advisory committees to ensure that the funds are used responsibly. By increasing payments to healthcare providers, the measure will help attract more doctors to the Medi-Cal system, improving access to healthcare and ensuring that patients receive timely and quality care.

Opponents have raised concerns about potential risks with federal approval, but California has successfully leveraged the MCO tax for years, and the benefits far outweigh any speculative challenges. Supporting this proposition means protecting healthcare for millions of Californians while ensuring financial stability for the state.