CPCA Advances a New Strategy to Increase Funding to Health Centers through a Ballot Initiative

Throughout 2023, CPCA has been working in partnership with a broad coalition of health care system leaders, including health plan leaders, across California to advocate for the reinstatement of a tax on Managed Care Organizations (MCO tax) and ensure that its revenues are dedicated to the Medi-Cal system. As a part of the Governor’s FY 2023/24 state budget, the MCO tax was renewed. Subsequent discussions between the Administration and the coalition led to a historic investment in Medi-Cal rate increases, along with $100 million dedicated to community health centers (CHCs) in this year’s budget. 

On September 7, 2023, the Coalition to Protect Access to Care filed a statewide ballot initiative with the Attorney General seeking to make the MCO tax permanent and unlock billions of dollars for Medi-Cal. If passed, this funding would include $300 million dedicated to community health centers, along with billions in supplemental and increased payments for primary care and specialty care, and hundreds of millions of dollars in workforce investments annually. Funding allocated through the ballot initiative would be prohibited from being used to supplant existing funding streams, and would not be subject to reconciliation, protecting CHCs’ ability to access funding in addition to their PPS rate.

Pursuing this ballot initiative is one way in which CPCA is working to achieve two of the five bold steps identified in this year’s updated strategic plan: Becoming a Center of Advocacy Power & Influence and Health Center Optimization. This exciting new strategy is in addition to the variety of ways we are already pursuing these steps, including ongoing legislative, budget, and regulatory advocacy; and building health center capacity for civic engagement. If successful, the payoff for health centers, all Californians, and California’s public health care system overall, will be significant.

CPCA is working closely with coalition partners to ensure this policy will be approved by voters when it comes before them on November 5, 2024. As a trusted voice within our communities, health centers have an important role in educating the public about the importance of this policy. With the help of our members, we can ensure that every patient, staff, or family member we talk to understands the significance of passing this initiative.

In the coming months and over the next year, you will hear frequently from us about ways to support this effort. Signature gathering will begin in mid to late November and last for approximately 180 days. Once enough valid signatures are submitted and certified, the Secretary of State will place the initiative on the November 5, 2024 ballot.

CPCA and some of our member health centers are stepping up to make major investments to ensure this initiative passes. As we get closer to the election, there will be opportunities to participate in activities to educate the public. For more information on how to get involved, please reach out to CPCA’s Vice President of Civic Engagement and Community Affairs, Lindsey Freitas, at lfreitas@cpca.org.