California Prop 34 explained: Ensuring healthcare profits support direct patient care
California's Proposition 34 restricts spending of prescription drug revenues by certain health care providers.
It would require health care providers who meet specific criteria to spend 98% of their revenue from federal discount prescription drug programs on direct patient care.
According to the state, this would only apply to health care providers that spend over $100,000,000 in any ten-year period on anything other than direct patient care and operate multifamily housing reported to have at least 500 high-severity health and safety violations.
YES vote
A "YES" vote on this measure means certain health care providers would have to follow new rules about how they spend revenue they earn from federal drug discount programs.
Going forward, they would be penalized if they break the rules for a ten-year period. The penalty could include not being able to operate as a health care entity.
NO vote
A "NO" vote means new rules would not go into effect.
Proponents argue Prop 34 would protect patients by ensuring health care dollars would actually go to patients who need it, rather than being used on things like naming rights for stadiums.
Opponents argue this proposition is a wolf in sheep’s clothing and have called it a "revenge initiative."
They say the California Apartment Association doesn’t care about patients and that they want to silence the AIDS Healthcare Foundation. They say this opens the door to attacks on any nonprofit.
CA Propositions: What are the 10 measures on the November ballot?
There are 10 propositions California voters will be deciding on during the November General Election, ranging from healthcare and crime to raising the minimum wage. Here's a breakdown of each proposition on the 2024 ballot.
Who supports Prop 34?
Support includes the California Apartment Association, the ALS Association, the Howard Jarvis Taxpayers Association, the California Chamber of Commerce, and the California Republican Party.
Who opposes Prop 34?
It is opposed by the AIDS Healthcare Foundation, National Organization for Women, Consumer Watchdog, The Coalition for Economic Survival, and UNITE HERE Local 11 among others.