ADA, CDA collaboration helps protect Proposition 56 dental funding

The American Dental Association’s Health Policy Institute provided research and data to support the California Dental Association’s advocacy efforts to protect Proposition 56 funding for Medi-Cal Dental as state lawmakers considered proposed cuts to the program.

California’s 2026-27 state budget preserves current Medi-Cal Dental reimbursement rates for another year, delaying $1 billion in proposed cuts from July 1, 2026, until July 1, 2027. The budget also maintains dental benefits for individuals who lack permanent legal status.

The proposed cuts would have eliminated increased Medi-Cal Dental reimbursement rates established following the passage of Proposition 56, a tobacco tax measure approved by California voters in 2016. According to the CDA, the cuts would have amounted to one-third of current Medi-Cal Dental funding and returned reimbursement rates to levels established in the 1990s.

“Passed by California voters in 2016, Proposition 56 raised the state’s tobacco tax with some of the tax revenue going to increased Medi-Cal Dental reimbursement rates, in some cases by 40% or more. Since Prop 56 dental payments have been in effect, the state has seen nearly a 40% increase in provider enrollment in Medi-Cal,” said CDA President Robert Hanlon, D.M.D.

As part of its advocacy, the CDA used research and analysis from HPI to provide lawmakers with information about the potential effects of reducing dental funding. HPI resources included research examining the consequences of eliminating adult Medicaid dental benefits and California-specific analysis comparing the state’s reimbursement rates without Proposition 56 funding with national averages.

HPI’s 2025 research brief on the elimination of adult Medicaid dental benefits examined previous state-level reductions in coverage and their potential effects on healthcare utilization and costs. The analysis highlighted California’s elimination of most adult Medicaid dental benefits in 2009, after which about 3 million adult beneficiaries lost coverage for preventive dental services and emergency department visits for nontraumatic dental conditions increased.

“Research from ADA’s Health Policy Institute served as a useful supporting resource within [the] CDA’s advocacy efforts by providing the baseline numbers necessary to help verify for lawmakers the fiscal and health system risks of cutting Medi-Cal dental funding as initially proposed in the 2026-27 budget,” Dr. Hanlon said.

The CDA’s campaign also included the Save Our Dental Care coalition, which included 125 organizations representing healthcare providers and other groups. According to the CDA, more than 4,800 dentists and coalition members participated in calls to action, sending more than 12,000 emails to the governor and legislature and submitting 234 testimonials about how the proposed cuts could affect patients’ ability to obtain dental care.

The CDA reported that Proposition 56 funding has been associated with increases in both Medi-Cal Dental provider participation and patient visits. Since the increased funding took effect, the number of Medi-Cal Dental providers has increased 34% while new dental office visits by Medi-Cal patients have increased 37%, according to the association.

While the 2026-27 budget maintains the funding for another year, the proposed cuts have not been eliminated and are now scheduled to take effect July 1, 2027. The CDA and the Save Our Dental Care coalition said they will continue advocating to prevent the reductions.