STOP THE DRUG PRICING SCAMS
Pass the Protect Patients Now Act to Help Patients and Protect Our Tax Dollars
EXPOSING THE WORST DRUG PRICING SCAMS
Almost 30 years ago, lawmakers designed a federal drug discount program that aimed to help health care nonprofits treat more low-income patients. The program allows these nonprofits to buy prescription drugs at a steep discount and then be reimbursed by health plans at a much higher price. Under existing law, these nonprofits are supposed to use this taxpayer-generated excess revenue to offer more health care benefits and serve more patients.
But some organizations such as AHF, led by safety net scammer Michael Weinstein, have abused the program, amassing hundreds of millions meant to help patients and instead spent it to further his own personal and political agenda.
Under Weinstein’s direction, AHF has used these taxpayer funds to purchase luxury condominiums, fund ballot measure campaigns to block housing construction, put an elected politician on its payroll, and acquire low-income multi-tenant housing complexes and operate them as slums.
These types of blatant abuse of taxpayer money violates the intent of the law, but because of loopholes in the drug discount program, bad actors can abuse their non-profit status to waste millions of dollars and avoid accountability.
And even in the face of widespread criticism from patients and health experts, Weinstein arrogantly says he will continue spending these taxpayer dollars inappropriately for as long as he is allowed to do so.
AHF and Weinstein are among the worst abusers of the drug discount program, but there are other bad actors as well. Californians can stop these drug pricing scams and close this loophole in the drug discount program.
PASS THE PROTECT PATIENTS NOW ACT TO PROTECT OUR CARE
The Protect Patients Now Act will force the worst abusers of the drug discount program like Weinstein’s AHF back to the program’s original mission to provide healthcare to low-income patients. This measure focuses only on the program’s worst offenders, putting in place new accountability measures to ensure they are appropriately using taxpayer dollars.
The Act requires the program’s worst offenders like Weinstein to spend 98% of their taxpayer-generated revenues on direct patient care.
So long as these worst offenders meet these requirements, they can continue their health care operations.
But if these offenders continue to misuse taxpayer funds, the Protect Patients Now Act requires the state to take away their non-profit status and make them ineligible to keep getting paid using taxpayer dollars.
The Protect Patients Now Act is Endorsed by:
Stop the scams and vote yes on the Patient Protection Act.
Rather than helping patients, the worst offenders have amassed hundreds of millions of dollars to further their own political and personal interests.
HOW HAVE YOUR TAX DOLLARS BEEN MISUSED?
For example, here are just some of the ways one of the worst drug price manipulators misspent money meant to help patients:
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Under Weinstein leadership, AHF has spent heavily to oppose affordable housing, including funding a local ballot measure that would have blocked construction of housing so Weinstein could preserve the view from his office. Weinstein sued the state in hopes of blocking laws that promote affordable housing. Leaders of the NAACP and housing advocates have strongly condemned Weinstein’s tactics that harm communities of color.
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Under Weinstein, AHF has spent $113 million on ballot measure campaigns to stop housing construction, to repeal state laws that make it easier to build housing, to put price controls on all residential rental properties and other initiatives. Although voters have repeatedly rejected Weinstein’s initiatives, Weinstein recently vowed he will continue to dump millions every year on these campaigns. “We’ll do it again if we have to – and again and again and again,” he told reporters in 2023.
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A recent Los Angeles Times report showed that AHF paid disgraced L.A. City Councilmember-elect Kevin de León more than $100,000 as a consultant without public disclosure. During this time, de León met with city officials advocating on behalf of the AHF without divulging his employment status.
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Weinstein’s AHF has used taxpayer money to purchase luxury condominiums and townhomes in California and Florida. When AHF bought their luxury Hollywood condominium in 2007, the listing described the 2 bedroom unit as “an entertainer’s dream” while Redfin currently estimated the unit’s value at $1 million dollars. Between 2018 and 2022, AHF also purchased and then sold at a profit 10 luxury townhomes in South Florida.
Other 340B abusers have used taxpayer dollars to construct luxury apartments equipped with saltwater pools and Peloton bicycles.
