July 10, 2024: Article updated to provide the latest progress on the ballot measure.
A state ballot measure that would lock in new funding to increase Medi-Cal dental reimbursement rates, dental student loan repayments, health care workforce development and other programs is now set for the November 2024 election as Proposition 35.
A broad coalition of health care organizations including CDA filed the ballot measure last September to protect and expand access to a variety of health care services. The coalition collected more than 800,000 voter signatures to qualify the measure for the ballot. Now known as Proposition 35, it will be one of 10 measures on California voters’ ballots this November.
“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 CDA President Carliza Marcos, DDS, in the coalition’s news release. “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 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 without raising taxes on individuals.
The measure would make the state’s MCO tax permanent, dedicate the money for Medi-Cal and specific health programs (as opposed to the state’s general fund like previous MCO taxes), and add Medi-Cal dental reimbursement rates to the list of programs receiving funds starting in 2027. Prop. 35 would also secure new, ongoing funding for CalHealthCares, the state’s student loan repayment program for dentists and physicians.
Importantly, the measure will also prevent the state from redirecting these revenues for non-health care purposes.
Focusing on dental rate increases for restorative and specialty services for adults
The designated funds for Medi-Cal dental services will amount to at least a 10% increase in its total budget, similar to the funding initially allocated under the Proposition 56 tobacco tax, with the added 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.
“This is an important opportunity to strengthen the Medi-Cal program for the long term and ensure health care dollars stay in health care,” said CDA past President John Blake, DDS, when the coalition announced the measure last year. “With 15 million Californians relying on Medi-Cal for their health coverage, we need it to be a functional program with stable funding. That’s what this initiative is about. Establishing an ongoing, sustainable funding source like this will help reassure dentists, especially younger dentists, about Medi-Cal’s longer-term viability.”
The measure’s other relevant provisions include new student loan repayment funds for dentists and physicians and funds to expand education and training to increase the number of health care workers. The coalition, which is composed of physicians, dentists, community health centers, Planned Parenthood, emergency responders, health insurance plans and health care workers, will also focus on additional key provisions, such as increased funding for mental health programs and reducing emergency response times.
CDA will share ways to help with the campaign in the coming months — ahead of the November election.