In November 2024, Californians voted resoundingly for Proposition 35, which secures dedicated funding to expand and protect access to health care for the millions of Californians who depend on Medi-Cal. Prop 35 provides ongoing funding for the largest Medi-Cal provider rate increases in history. 

While the more limited 2024 Medi-Cal targeted rate increases went into effect on January 1, 2024, it took all of 2024 for that funding to be paid out retroactively to physicians and other Medi-Cal providers, and there are still some physicians who have not yet received the totality of those 2024 funds from health plans. 

The California Medical Association (CMA) continues to work with the California Department of Health Care Services on these outstanding 2024 payment issues. Practices that have not received full payment of the increased rates for 2024 should contact the health plan to inquire and also contact CMA’s Center for Economic Services at (800) 786-4262 or economicservices@cmadocs.org.  

The 2025 Prop 35 Medi-Cal rate increases will similarly take some time to implement, because of the number of categories of health care services that will receive additional reimbursement, and the billions of dollars involved. 

CMA has published a fact sheet – Medi-Cal Rate Increases: Timeline and Implementation Details – that provides an overview of and status update on both the 2024 targeted rate increases and the 2025 Prop 35 increases. 

CMA is proud to have led the coalition that brought Prop 35 to the voters to seize this once-in-a-generation opportunity to build a health care system that works for all Californians. CMA will provide updates throughout the year as our Prop 35 implementation work continues, sharing new information when it is available and soliciting physician feedback, as appropriate.