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Prop 35 Advisory Committee Convenes to Protect Healthcare Access


On April 14, the California Department of Health Care Services (DHCS) convened the inaugural meeting of the Protect Access to Health Care Act Stakeholder Advisory Committee. This committee is tasked with advising DHCS on the development and implementation of Proposition 35 components.


The California Medical Association (CMA), which co-chaired the coalition that introduced Prop. 35 to voters in November 2024, is advocating for prompt action to disburse the 2025 funding. The initiative establishes a dedicated, ongoing funding source to improve healthcare access and increase Medi-Cal reimbursement rates.


During the first advisory committee meeting, Linnea Koopmans, CEO of Local Health Plans of California and a key member of the Prop. 35 coalition, was elected chair of the committee.


Despite the overwhelming support for Prop. 35 in the November election, the state has been slow to commence its implementation. CMA Chief of Staff Janice Rocco, who testified during the meeting, emphasized the importance of swift action: “After three years of work, it’s incredibly rewarding to see Prop. 35 moving from concept to implementation. Our priority now is to act swiftly—so we can get the 2025 dollars flowing and begin delivering on the promise of meaningful payment reform.”


While the initial meeting was primarily procedural, the committee plans to hold its next meeting in May. CMA remains committed to ensuring that physician payment updates are implemented without further delay, aiming to make access to care a reality for California’s 15 million Medi-Cal enrollees.


Proposition 35: Impact on Los Angeles


Proposition 35, officially known as the Managed Care Organization Tax Authorization Initiative, was passed by California voters on November 5, 2024, with approximately 68% approval. The measure makes permanent an existing tax on managed health care insurance plans, generating an estimated $7 billion to $8 billion annually for Medi-Cal services, pending federal approval. 


In Los Angeles County, where nearly half of the population is enrolled in Medi-Cal, the implications of Prop. 35 are significant. The county has faced challenges such as the closure of 17 maternity wards over the past decade, disproportionately affecting low-income Black and Latino communities. These closures have been attributed to low Medi-Cal reimbursement rates, which have made it financially unsustainable for hospitals to maintain certain services. 


The implementation of Prop. 35 aims to address these issues by providing a stable funding source to increase reimbursement rates, thereby encouraging healthcare providers to continue offering essential services to Medi-Cal patients. This is particularly crucial for facilities like Martin Luther King Jr. Community Hospital in South Los Angeles, which has continued to operate its maternity ward despite significant financial losses. 


Looking Ahead


As the Protect Access to Health Care Act Stakeholder Advisory Committee progresses with the implementation of Proposition 35, stakeholders in Los Angeles and across California are hopeful that the initiative will lead to improved access to healthcare services for Medi-Cal enrollees. The CMA and other advocates continue to push for timely action to ensure that the promised reforms translate into tangible benefits for patients and providers alike.


The next advisory committee meeting is scheduled for May, where further steps toward the realization of Prop. 35’s objectives will be discussed.

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