Proposition 52: State Fees on Hospitals, Federal Medi-Cal Matching Funds

The voting information below is from the Secretary of State website:

Increases required vote to two-thirds for the Legislature to amend a certain existing law that imposes fees on hospitals (for purpose of obtaining federal Medi-Cal matching funds) and that directs those fees and federal matching funds to hospital-provided Medi-Cal health care services, to uncompensated care provided by hospitals to uninsured patients, and to children's health coverage.

Eliminates law's ending date. Declares that law's fee proceeds shall not be considered revenues for purposes of applying state spending limit or determining required education funding.

A Yes Vote Means 

A YES vote on this measure means: An existing charge imposed on most private hospitals that is scheduled to end on January 1, 2018 under current law would be extended permanently. It would be harder for the Legislature to make changes to it. Revenue raised would be used to create state savings, increase payments for hospital services to low-income Californians, and provide grants to public hospitals.

A No Vote Means 

A NO vote on this measure means: An existing charge imposed on most private hospitals would end on January 1, 2018 unless additional action by the Legislature extended it.

Pro Argument 

YES on Proposition 52 extends the current state Medi–Cal hospital fee program, which generates over $3 billion a year in federal matching funds that pay for health care services for children, seniors and low-income families. Proposition 52 prohibits the Legislature from diverting this money for other purposes without voter approval.

Read more about the argument for this ballot here. 

Con Argument 

Removes all accountability and oversight of over $3 billion of taxpayer dollars. Gives $3 billion to hospital CEOs with no independent audit and no requirement the money is spent on health care. Public funds can be spent on lobbyists, perks and salaries for hospital bureaucrats instead of children and seniors.

Californians for Hospital Accountabilty and Quality Care–No on 52, Sponsored by Service Employees International Union–United Healthcare Workers West is against this measure. Read why here.