California Voters Consider Prop 34 for Healthcare Funding

On November 5, 2024, California voters will decide on several statewide propositions, including Proposition 34 and Proposition 35. Proposition 34 seeks to enforce spending restrictions on specific healthcare providers, mandating that at least 98% of their net drug sale revenue be allocated to direct patient care. This measure targets providers with significant expenses outside of direct care and poor housing conditions, with noncompliance risking their licenses and tax-exempt status. Meanwhile, Proposition 35 aims to make the Managed Care Organization Provider Tax permanent, a tax that supports Medi-Cal funding and aims to improve reimbursement rates to healthcare providers. Backed by both major political parties and health organizations, Proposition 35 could generate $7-8 billion annually if consistently approved. These propositions reflect ongoing concerns over healthcare funding and provider accountability in California.