Our View: Vote NO on Proposition 34; Vote YES on Proposition 35
Two healthcare propositions appear on the November ballot. Proposition 34 would restrict the spending of revenue derived from a federal pharmaceutical discount. Proposition 35 would permanently impose a tax on some managed care health insurance providers and designate how the money can be spent. Vote NO on Proposition 34 and YES on Proposition 35.
Proposition 34
Less about patient care and more about political rivalry, Proposition 34 pits powerful groups, such as the
Voters are mere pawns in an ongoing battle to use the electoral system to further the ambitions of self-interested combatants. For that reason, voters should reject Proposition 34. (In an earlier editorial, The Californian recommended voters reject the equally cynical Prop. 33.)
Proposition 34 targets a federal pharmaceuticals discount given to healthcare providers who serve low-income, at-risk people. The arrangement, which dates back to 1992, allows these organizations to sell the discounted medications at retail prices and use the profits to expand their services to disadvantaged groups.
Proposition 34 would require some of these providers to spend 98% of the revenue on "direct patient care."
But the trick is that the targeted "some providers" is so narrowly defined in Proposition 34 that the requirement likely only applies to Weinstein and his
It would only apply to providers that spend at least
The foundation operates HIV/AIDS clinics in 15 states. It also has many rental properties. including some on LA's
Under Weinstein's leadership, the foundation has become embroiled in state and local housing politics. It has aggressively lobbied and campaigned against legislation requiring local governments to permit dense housing. In 2017, it backed a partial development moratorium in
Because Proposition 34 has been so narrowly framed to apply specifically to Weinstein and his foundation, court challenges are expected to bog down its implementation for years to come — maybe indefinitely. Vote NO on Proposition 34.
Proposition 35
Proposition 35 would permanently impose a tax on managed care health insurance providers that arrange or provide services on a monthly payment basis. The measure also designates how the tax revenues can be used.
The tax has been imposed for years. Last summer, as it was set to once again sunset, Gov.
Healthcare providers have long complained that
The state legislative analyst estimates renewal of the tax will generate between
In extending the tax, legislators dedicated some revenues to increase provider reimbursement rates. However, providers insist rate increase assurances are needed to prevent service shortages and long patient waits.
Proposition 35 would designate how the tax revenue can be spent and limit the ability of the Legislature and governor to divert the money for other uses. At least a vote of three-quarters of the members of the Assembly and state
Initially, Proposition 35 would allow the tax revenues to be used according to Newsom's and the Legislature's recently adopted state budget plan. The money would be used to somewhat increase providers' reimbursement rates, and to train healthcare workers, among other things. Beginning in 2027, a formula will be implemented to designate funding for specific uses.
Proposition 35 enjoys overwhelming support. It is backed by the
Although there is no "official" opposition, Newsom indicated he opposes the measure because restricting the use of tax revenues "hamstrings" the ability of future legislators and governors to balance the state budget. Vote YES on Proposition 35.
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