California Proposition 34 would restrict how providers spend prescription drug revenue. Here's what to know

Proposition 33

A California ballot measure up for vote in the 2024 election would establish restrictions on how some health providers can spend revenue from prescription drug programs.

Proposition 34 would set up rules requiring certain providers to spend 98% of their revenues from federal discount prescription drug programs on direct patient care, with penalties for those who fail to comply. 

Repercussions could include not being able to operate as a health care entity for up to a 10-year period. The measure would also authorize statewide negotiation of Medi-Cal drug prices. 

What do supporters of Proposition 34 say?

Proponents of Proposition 34 say the measure will help protect patients and ensure discount prescription drug revenue would go to help those who need additional care, closing a loophole that they say allows corporations to spend that revenue on things such as purchasing stadium-naming rights and paying multi-million dollar salaries to executives.

What do opponents of Proposition 34 say?

Opponents have argued that Proposition 34 is a so-called "revenge initiative" funded by corporate landlords and billionaires through the California Apartment Association. 

They say the measure is aimed at stripping the Los Angeles-based AIDS Healthcare Foundation of its nonprofit status, disrupting the organization's work supporting rent control in California and the effort to repeal the Costa-Hawkins Rental Housing Act of 1995 through Proposition 33.

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