What is Prop 35? Look at California measure focused on healthcare insurance

FRESNO, Calif. -- California voters will consider permanently approving a healthcare tax in November. Proposition 35 would authorize the state to keep a tax on some managed healthcare insurance plans, like Kaiser Permanente.

"That money will be directed for the Medi-Cal program in California," Justin Preas said. He runs the United Health Centers of the San Joaquin Valley.

Preas said using the tax revenue to fund Medi-Cal helps ensure low-income Californians can get the healthcare they need. Prop 35 could impact many of his 175,000 patients.

"We especially serve the underserved people in our communities," Preas said. "So, patients that are on Medi-Cal. Patients that don't have insurance."

The tax on managed health care insurance plans began in 2009, but it has never been permanent. The state legislature re-approves it every few years.

Supporters say the dedicated tax-and Prop 35-means the state does not have to take Medi-Cal money from the general fund and keep it for other uses instead.

But some citizens have concerns.

"Prop 35 makes it much harder for kids, like my son, to access care at home," Jenny McLelland said.

Her 13-year-old son receives nursing care at home, where he uses a ventilator at night. It keeps him out of the hospital, which McLelland says lets him focus on being a kid.

"Prop 35 locks the Medi-Cal rates for home nursing care at low levels that make it so hard for families like mine to work," McLelland said.

There is no stated opposition to Prop 35 on the ballot, but McLelland worries the proposal focuses too much on hospital care and does not fund the type of home care her son needs.

"California needs to fund the systems that keep disabled people safe and healthy at home," McLelland said.

One recent estimate predicts Proposition 35 would bring between $7 billion and $8 billion to the state annually. Officials like Preas say they desperately need that money for healthcare facilities.

"That many will be directed toward patient care," Preas said. "Providing levels of revenue and reimbursement for our providers in the state to be able to afford to provide these services to patients."

If Proposition 35 fails and the tax does not become permanent, the state legislature could vote to temporarily extend it when the current tax expires in 2027.

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