Proposition 34 would mandate certain California healthcare providers to spend at least 98% of revenue from discounted drug sales directly on patient care, according to the state's voter guide. Noncompliant providers could lose their state license, tax-exempt status, and government contracts.
This rule applies only to providers with over $100 million in non-care expenses, property ownership, and a history of at least 500 health violations.
Proposition 34 targets the AIDS Healthcare Foundation, led by Michael Weinstein, who’s faced opposition for spending on housing politics over patient care. Funding for Prop. 34 largely comes from the California Apartment Association, an active Weinstein opponent.
Supporters argue Prop. 34 would add transparency, ensuring patient revenue isn’t redirected elsewhere. Opponents claim the measure unfairly singles out one organization and faces constitutional challenges.
