CHA News Article

Labor, Business Organizations Unite Behind CHA-Sponsored Ballot Initiative
Medi-Cal funding measure on November ballot

Labor and business groups have formed an alliance to seek voter passage of the Medi-Cal Funding and Accountability Act, CHA’s hospital fee initiative, on the November 2016 ballot. Recently, labor giant United Food and Commercial Workers Western States Council added its support, joining almost 70 other labor organizations in California. The growing list includes the State Building and Construction Trades Council of California, the California State Association of Electrical Workers, the International Brotherhood of Boilermakers and a range of union locals.

In addition, the initiative has won endorsements from prominent business organizations including the California Business Roundtable, the California Chamber of Commerce, Silicon Valley Leadership Group, the Los Angeles County Business Federation and the California Asian Pacific Chamber of Commerce. They are part of a roster of more than 80 business groups, including local and regional Chambers of Commerce, that are on record in support of the ballot measure.

The Medi-Cal Funding and Accountability Act, already qualified for the ballot, will provide greater certainty for California in accessing approximately $3 billion a year in federal funds to pay for health care for residents enrolled in the Medi-Cal program. Currently, more than 13 million Californians are enrolled in Medi-Cal, or nearly one in three residents of the state.

Since 2009, California hospitals have agreed to pay the state billions of dollars annually to draw down matching federal funds for the Medi-Cal program. Once the hospital funds are matched with federal dollars, the monies are redistributed to hospitals in the form of supplemental Medi-Cal payments. As part of the agreement, hospitals have supported the state taking a small portion of the fee money to pay for health care for children. The initiative will stabilize that contribution and ensure that funding intended to pay for Medi-Cal services is not diverted.

More information and background — including an updated list of supporters, data on the Medi-Cal program and the ballot measure language — can be found on the campaign website, www.KeepAGoodIdeaWorking.org/. The initiative will receive a ballot number early this summer.

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