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Prop 35 Explainer: Make permanent a tax on managed health care plans

Cal Matters

Prop. 35 would require the state to use money from a tax on health insurance plans to boost payments to doctors who serve Medi-Cal patients.

Over the last few years, the state has expanded Medi-Cal to cover more Californians than ever, now around 14-million people.

But the amount that doctors get paid to treat Medi-Cal patients has not kept up with inflation.

As a result, many providers won’t treat them according to the California Health Care Foundation.

Supporters say Prop. 35 will encourage doctors to serve more low-income patients because they’d be getting paid more for their services.

Opponents worry putting restrictions on how the state spends this money could mean cuts to other Medi-Cal programs.

CapRadio is the NPR-member station located in Sacramento, Ca, and is a service of Sacramento State University. It serves Northern California and Western Nevada cities, including Sacramento, Reno, Stockton, Chico, Redding, and Eureka.
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