Yes on Proposition 34
Restricts Spending by Health Care Providers Meeting Specified Criteria
What is it?
Mechanically, Proposition 34 will set new rules for any organizations which receive money from the "Medi-Cal Rx" prescription discount plan, and who have spent over $100 million over ten years on programs not related to patient care. These organizations will be classified as "prescription drug price manipulators" and be required to spend 98% of their funds directly on patient care.
In practice, it targets a specific organization based in Los Angeles in order to stop them from spending government medical dollars on political campaigns. This supposed health nonprofit spends lavishly to influence politicians and push ballot measures to stop new home building.
The initiative specifically applies to Medi-Cal Rx (cheaper prescription drugs program) participants who have spent over $100 million in ten years on non-patient care and have operated multifamily housing with 500+ high-severity health and safety violations. The Los Angeles-based "AIDS Healthcare Foundation" (AHF) is the only participant meeting these criteria, having spent over $100 million on political campaigns in the past decade and racking up over 500 high-severity violations in their housing projects. AHF has faced widespread condemnation for the inhumane conditions in its housing projects. Recently, California lawmakers canceled AHF's contract after the nonprofit threatened to cut off HIV-positive patients from care during negotiations with state regulators.
Rather than spend its government subsidies on AIDS treatment, the AIDS Healthcare Foundation has funded politicians across the U.S. and backed or written eight ballot measures, six of which voters have defeated.
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Fiscal impacts
Prop 34 will have negligible fiscal impacts on state and local governments. The Legislative Analyst's Office estimates that the measure will not significantly affect state or local finances. They predict some cost to enforcement of the new rules, but they are expected to be minor.
- See "Fiscal Effects" section of the Legislative Analyst's Office report (PDF)
Why is this on the ballot?
This is a signature initiative, meaning it was placed on the ballot by paid signature gathering, funded largely by the California Apartment Association's $11.7 million donation. The initiative is backed by a coalition of cancer treatment organizations, medical organizations, and housing advocates.
According to Article II, Section 8 of the California Constitution, citizens may introduce statutes (laws) by collecting signatures (5% of the votes cast in the most recent Governor's race). The statute must then be approved by voters with a simple majority of 50% + 1.
- Proponent: "Protect Patients Now"
- Placed on ballot by: Paid signature gathering
As of July 29, 2024 there is no organized opposition to this measure.
Why vote Yes?
Companies should not be able to spend Medi-Cal funds on politics.
This ballot measure targets a single company based in Los Angeles that takes money intended to help AIDS patients and instead spends it on their own political campaigns. Over the past ten years they have spent at least $100 million pushing their politics instead of helping patients.
This gross misuse of medical funding must be stopped.
Vote yes on Prop 34 to ensure that medical funds are spent on patient care, not political campaigns.