Proposition 52 is an excellent way to ensure that vital healthcare funding for low-income individuals remains solid for years to come.
Medi-Cal provides healthcare coverage for low-income individuals in California, and the federal government provides matching funds for every dollar California spends on the program. Since 2009, the state has taxed private hospitals to fund its portion of Medi-Cal, and due to federal matching funds, the hospitals taxed would receive more money back in reimbursements, ensuring a steady stream of money for Medi-Cal.
However, in recent years the legislature has been diverting funds from the tax to a general fund that could allow it to spend the money on programs not related to healthcare. Proposition 52 would limit how much money can be diverted from Medi-Cal, and by making this tax a part of California’s constitution, it ensures that funding for Medi-Cal becomes permanent – thereby safeguarding funds necessary to low-income Californians.
This board endorses Proposition 52 as a way to keep Medi-Cal afloat and protect the most vulnerable Californians.
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