Voters approve CDA-sponsored Prop. 35, securing new health care funding 

Measure will protect health care funding, improve dental provider rates for the long term
November 6, 2024
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QUICK SUMMARY:  Proposition 35 was approved by California voters in the Nov. 5 General Election. The measure, co-sponsored by CDA, increases health care funding and prevents the state from redirecting the funds to other purposes. Designated funding for Medi-Cal dental services would amount to at least a 10% increase in its total annual budget starting in 2027, approximately $300 million including federal matching funds. Prop. 35 also secures up to $10 million annually for dental student loan repayments.

In a historic victory for California’s health care system, voters approved Proposition 35 in the November 2024 General Election. Co-sponsored by CDA, Prop. 35 is a landmark initiative that will protect and expand health care access for 15 million Californians. The measure passed with 67% of the vote as of Dec. 5, the last day county officials can certify results.

“The passage of Prop. 35 is a critical win for health care and we want to thank California voters for their strong support, said CDA President Carliza Marcos, DDS. “I also want to thank CDA members for their support and the variety of ways they participated in this very worthy cause. Prop. 35 is essential to providing better access for patients and more certainty for dentists and health care providers. CDA is extremely proud of the Prop. 35 campaign and all the incredible work this coalition has done.”  

A coalition of more than 400 organizations came together in support of Prop. 35. The coalition filed the statewide ballot measure in September 2023 to protect and expand access to a variety of health care services in California and collected more than 800,000 voter signatures to qualify the measure for the November ballot.  

In recent months, CDA distributed over 25,000 Prop. 35 promotional materials to members, students and dental societies. Members participated in the campaign by displaying materials, speaking to colleagues, contacting voters and promoting the measure through social media.  

Funding to increase Medi-Cal dental reimbursements and student loan repayments 

Prop. 35 provides new funding without raising taxes and is built around an existing “managed care organization” tax on health insurance companies, a revenue source that California has used for years to maximize federal funds that support state programs like Medi-Cal.

The measure makes the state’s MCO tax permanent, dedicates the money for Medi-Cal and specific health programs (as opposed to the state’s general fund like previous MCO taxes) and adds Medi-Cal Dental reimbursement rates to the list of programs receiving funds starting in 2027. Importantly, Prop. 35 prevents the state from redirecting these revenues for non-health care purposes. 

The designated funds for Medi-Cal Dental services will amount to at least a 10% increase in its total annual budget (approximately $300 million including federal matching funds), similar to the funding initially allocated under the Proposition 56 (2016) tobacco tax, with the bonus of not being a declining revenue source. The intent is to focus dental rate increases on restorative and specialty services for adults, complementing the increases made through Proposition 56 and the Dental Transformation Initiative several years ago, which primarily targeted prevention and children’s services. 

“Medi-Cal currently provides medical and dental coverage to 15 million low-income Californians, making it the largest provider of medical and dental insurance in the state,” said Dr. Marcos in the coalition’s news release when the measure qualified. “After decades of underfunding, Prop. 35 will finally provide some long-term, permanent funding solutions we need to provide better access to millions of Californians.” 

Prop. 35 provides new funding for CalHealthCares, the state’s student loan repayment program for dentists and physicians, securing up to $10 million annually for dental student loan repayments. This program, created through Proposition 56 funding, has delivered approximately $50 million in dental student loan repayment grants since 2018. Prop. 35’s other relevant provisions include funding to expand education and training to increase the number of health care workers.  

CDA will keep members informed about the implementation of Prop. 35 through the CDA newsroom, weekly member newsletter and social media channels. 

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