In November, Californians will weigh in on a ballot initiative to increase scrutiny over the use of health care dollars (particularly money from a federal drug discount program) to support patient care. largely from low-income or indigent people. The proceeds are sometimes used to address housing instability and homelessness among vulnerable patient populations.
Voters are being asked whether California should increase accountability in the 340B drug discount program, which provides money for community clinics, safety-net hospitals and other nonprofit health care providers.
The program requires pharmaceutical companies to offer drug discounts to these clinics and nonprofit entities, which can earn revenue by charging higher reimbursement rates.
Proponents of the measure, Proposition 34, say some entities are using the drug discount program as a slush fund, pouring money into housing and homelessness initiatives that don’t meet basic patient safety standards. Researchers and advocates have called for greater oversight.
“There are 340 billion entities that are misusing these public dollars,” he said. Nathan clickspokesperson for the pro-Proposition 34 campaign. “The goal of this program is to use this money to provide health care services to more low-income people.”
The bill would not prevent 340B providers from using health care funds for housing or homeless programs. Instead, it targets suppliers who spend more than $100 million for purposes other than direct patient care for 10 years. I would order that 98 percentOf 340 billion of revenue goes to direct patient care. It also targets 340B providers with health insurance contracts and pharmacy licenses and those who serve low-income Medicaid or Medicare patients who have been affected with at least 500 high-severity housing violations due to substandard or unsafe conditions.
This has put the Los Angeles-based company in the spotlight. AIDS Healthcare Foundationa nonprofit organization that provides direct patient care through clinics and pharmacies in California and other states, including Illinois, Texas, and New York. It also has housing for low-income and homeless people.
TO Los Angeles Times The investigation found that many residents of AIDS Healthcare Foundation properties live in deplorable and unsanitary conditions.
michael weinsteinfoundation president, disputes those claims and argues that Proposition 34 advocates, including real estate interests, are pursuing him over another ballot initiative that seeks to implement rent control in more communities across California.
“It’s a revenge initiative,” Weinstein said, arguing that the rich California Apartment Association is targeting his foundation, and its health and housing operations, because it has backed ballot measures pushing for rent control across California. “This is a two-pronged attack on us to defeat rent control.”
Weinstein is locked in a dispute with the apartment association, the initiative’s main sponsor, which has contributed generously to passing Proposition 34. Opponents argue that the initiative is “a wolf in sheep’s clothing.”
Weinstein acknowledged to KFF Health News that his nonprofit uses money from $340 billion in drug discounts to support its housing initiatives, but argued that they are helping to treat and house some of the most vulnerable people, who would otherwise They would be left homeless.
The apartment association declined several requests for comment. But Proposition 34 supporters say they are not going after rent control, or Weinstein and his nonprofit.
Supporters argue that “rising health care costs are squeezing millions of Californians” and say the initiative “would provide California patients and taxpayers with much-needed relief and reduce state drug costs, while saving billions to California taxpayers.”
If the initiative is approved and 340 billion suppliers do not spend 98 percent of revenue from direct patient care, they could lose their license to practice health care and their nonprofit status.
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