Prop 52: Medi-Cal Hospital Reimbursement Initiative

7.08.2016 | Initiatives

Ballot Title

State Fees on Hospitals. Federal Medi-Cal Matching Funds. Initiative Statutory and Constitutional Amendment.


This initiative would add an amendment to the California Constitution. In 2009 hospitals were allowed to pay a fee to help California obtain available Medicaid funds. This program resulted in California hospitals receiving upwards of $2 billion per year in additional federal money. This initiative would ensure that the hospitals’ fee to California would be used for its designated purpose by requiring voter approval of changes to the fee program to ensure that California uses the fees for the purpose of supporting hospital care.

Arguments For

“For more than two decades, California has not appropriated the monies necessary to draw down the full amount of available federal matching funds for Medi-Cal payments to hospitals… California hospitals stepped into this void in 2009… but the effectiveness of this effort is being undermined by the state’s continual redirection of increasing amounts of the hospital fee money into the General Fund.” – Duane Dauner, President/CEO of California Hospital Association

Arguments Against

“Another measure related to the hospital provider fee program has already qualified for the ballot while yet another was filed two weeks ago that raises taxes, in part, to fund hospitals. Both funding initiatives potentially put billions of dollars at the disposal of hospital executives with little accountability around access, affordability and quality.” – Service Employees International Union, United Health Care Workers West

Supporters Website

No Opponents Website At This Time

Click here to read the text initiative

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