RESTRICTS SPENDING OF PRESCRIPTION DRUG REVENUES BY CERTAIN HEALTH CARE PROVIDERS. INITIATIVE STATUTE.
OFFICIAL TITLE AND SUMMARY
PREPARED BY THE ATTORNEY GENERAL
Requires health care providers meeting specified criteria to spend 98% of revenues from federal discount prescription drug program on direct patient care.
Applies only to health care providers that: (1) spent over $100,000,000 in any ten-year period on anything other than direct patient care; and (2) operated multifamily housing reported to have at least 500 high-severity health and safety violations.
Penalizes noncompliance with spending restrictions by revoking health care licenses and tax-exempt status.
Permanently authorizes state to negotiate Medi-Cal drug prices on statewide basis.
SUMMARY OF LEGISLATIVE ANALYST'S ESTIMATE OF NET STATE AND LOCAL GOVERNMENT FISCAL IMPACT:
Increased state costs, likely in the millions of dollars annually, to enforce new rules on certain health care entities. Affected entities would pay fees to cover these costs.