In November 2016, California voters passed Proposition 56, also known as the California Healthcare Research and Prevention Tobacco Tax Act. Prop. 56 imposed a $2-a-pack tax on cigarettes and a proportional tax on other nicotine products, starting April 2017. The proposition allocated money for many things, but a large percentage was earmarked to support Medi-Cal providers.
Starting 2019, the Legislature and Department of Health Care Services (DHCS) will use Prop. 56 funding for loan repayment for physicians and dentists, Value Based Payment Program (VBPP), Developmental Screening and ACEs screening, Family Planning Incentives, and Behavioral Health Integration grants.