Bay Curious Proposition 34: Prescription Drug Spending (But Also ... Rent Control?)
Oct 2, 2024
Aaron Schrank, a reporter from KCRW in Los Angeles, delves into the complexities of Proposition 34, which influences how federal drug pricing revenues are allocated. He highlights its unexpected ties to the rent control debate, showcasing how landlord groups are heavily financing this initiative. The conversation also covers the implications for the AIDS Healthcare Foundation and the Medi-Cal RX program, raising concerns about the interplay of healthcare funding and housing politics. Schrank reveals the contrasting motivations between health advocates and real estate interests.
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New 98% Rule For 340B Revenues
- Prop 34 would require certain providers to spend 98% of 340B revenues on direct patient care in California.
- It would also strip licenses and tax-exempt status from noncompliant providers, creating major operational risk.
340B Creates Unrestricted Revenue Streams
- The 340B program forces manufacturers to give big discounts to safety-net providers but doesn't dictate how providers spend the savings.
- That gap allows providers to generate revenue by billing insurers and use proceeds with no federal restrictions.
AHF's Growth From Hospice To Global Provider
- The AIDS Healthcare Foundation (AHF) began as a hospice and grew into a global health organization serving two million patients.
- AHF now runs 62 pharmacies and earns most of its $2.5 billion budget largely through 340B-related revenue.