Expanding Medicaid
Beginning April 1, 2019, Proposition 3 expands eligibility for Medicaid to include all newly eligible individuals under the Affordable Care Act-adults under 65 years of age with incomes below 138% of the federal poverty level who are not currently eligible for Medicaid.

Preserving the Scope of Medicaid and CHIP
Proposition 3 preserves certain aspects of the state's Medicaid and CHIP programs as they existed on January 1, 2017 to set a baseline for the scope of coverage and benefits available under each program going forward. By establishing the baselines, the Proposition prohibits future changes to the programs that would reduce the coverage or available benefits, but it allows changes that would expand them.

More specifically, the Proposition provides that:
*the standards, methodologies, and procedures for determining eligibility for Medicaid and CHIP cannot be made more restrictive than they were on January 1, 2017;
*there cannot be any limits on Medicaid enrollment beyond those in place on January 1, 2017;
*the categories of care or services and the types of benefits provided under Medicaid and CHIP cannot be made more restrictive than they were on January 1, 2017;
*any premium, beneficiary enrollment fee, or cost sharing requirements, including co-payments, co-insurance, deductibles, or out-of-pocket maximums, cannot be increased from what they were on January 1, 2017; and *Medicaid's and CHIP's payments to healthcare providers, like hospitals and physicians, cannot be made at a rate less than the rate paid on January 1, 2017, adjusting annually for inflation.

Funding Medicaid Expansion
Under the Affordable Care Act as it currently exists, the federal government will pay approximately 90% of the cost of the newly eligible individuals who gain Medicaid coverage under Proposition 3, and the state government must pay the remainder. Beginning April 1, 2019, Proposition 3 increases the state sales tax rate from 4.70% to 4.85% and directs the resulting revenue toward paying the state's portion. The increase does not apply to groceries. The Proposition requires the revenue from the 0.15% increase to be used primarily for expanding Medicaid eligibility to the newly eligible, but it provides that any remaining revenue can be used to fund Medicaid or CHIP more generally.