# Proposition 35

Type: legislation

Source: GetYourBrief — https://getyourbrief.com/entity/proposition-35
Canonical HTML page: https://getyourbrief.com/entity/proposition-35

## Timeline

- **2026-07-06**: Assembly Republicans Send Letter to HHS — A group of California Assembly Republicans formally asks the federal Health and Human Services Secretary to intervene against the MCO tax, calling it a burden on families and a misuse of funds.
- **2025**: Federal Uniformity Mandate — In response to California's disparate tax rates, federal regulators require all states to impose uniform provider taxes if they seek federal Medicaid matching funds.
- **2024-11**: Proposition 35 Passes — Voters approve the ballot measure with 68% of the vote, making the MCO tax permanent and requiring revenues to fund Medi-Cal, healthcare workforce, and drug subsidies.
- **2005**: MCO Tax First Enacted — California introduces the Managed Care Organization tax on health insurance plans, initially with lower rates for private plans and higher for Medi-Cal.

## Recent coverage (1 stories, network-wide)

### 68% Mandate vs. Federal Tax Rules: Legal Battle Looms Over California's MCO Tax
2026-07-12 03:26:03 · Sector: legal · Sentiment: Negative · Impact: 6/10 · Sources: 4

California's MCO tax, under Proposition 35 passed with 68% voter approval, faces federal pressure to comply with uniformity rules. Assembly Republicans' letter to HHS signals a potential legal confrontation over Medicaid reimbursement and state taxing authority.
Full story: https://getlegalbrief.com/story/california-mco-tax-federal-legal-challenge

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