Proposition 56

California Proposition 56 increased the excise tax rate on cigarettes, electronic cigarettes, and other tobacco products in phases beginning April 1, 2017 to support access to health care for low-income Californians covered by the Medi-Cal program. The Department of Health Care Services (DHCS) is responsible for structuring the supplemental payments from Proposition 56 funds.

DHCS has provided guidance and requirements to Medi-Cal managed care plans on how funds are to be distributed to Medi-Cal providers through policy guidance called All-Plan Letters (APL).

Please visit the DHCS Proposition 56 Program website at https://www.dhcs.ca.gov/provgovpart/Prop-56/Pages/default.aspx

Additional Incentives:

• DHCS Value Based Payment
• Federally Qualified Health Centers (FQHC)
• Primary Care Provider (PCP) Incentive Program