California Proposition 79 (2005)
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California Proposition 79 was on the November 8, 2005 special statewide ballot[1] in California, where it failed. The measure was an initiated state statute.
Had the measure passed, it would have created a new state drug discount program to reduce the costs that certain residents of the state, including persons in families with an income at or below 400 percent of the federal poverty level, would pay for prescription drugs purchased at pharmacies.
Proposition 79 was regarded as competing with California Proposition 78 (2005). Both propositions failed.
Election results
| Proposition 79 | ||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
 No
| 4,625,132 | 60.7% | ||
| Yes | 3,003,912 | 39.3% | ||
| Total votes | 7,634,315 | 100.00% | ||
| Voter turnout | NK% | |||
Official summary
The official summary provided to describe Proposition 79 said:
- Provides for prescription drug discounts to Californians who qualify based on income-related standards, to be funded through rebates from participating drug manufacturers negotiated by California Department of Health Services.
- Prohibits new Medi-Cal contracts with manufacturers not providing the Medicaid best price to this program, except for drugs without therapeutic equivalent.
- Rebates must be deposited in State Treasury fund, used only to reimburse pharmacies for discounts and to offset costs of administration.
- At least 95% of rebates must go to fund discounts.
- Establishes oversight board. Makes prescription drug profiteering, as described, unlawful.
Fiscal impact
The fiscal estimate provided by the California Legislative Analyst's Office said:
- One-time and ongoing state costs, potentially in the low tens of millions of dollars annually, for administration and outreach activities for a new drug discount program. A significant share of these costs would probably be borne by the state General Fund.
- State costs, potentially in the low tens of millions of dollars, to cover the funding gap between when drug rebates are collected by the state and when the state pays funds to pharmacies for drug discounts provided to consumers. Any such costs not covered through advance rebate payments from drug makers would be borne by the state General Fund.
- Unknown potentially significant net costs or savings as a result of provisions linking state Medi-Cal rebate contracts and the new drug discount program.
- Unknown potentially significant savings for state and county health programs due to the availability of drug discounts.
- Unknown costs and revenues from the provisions regarding lawsuits over profiteering on drug sales.
- Potential unknown effects on state revenues and expenditures from changes in prices and quantities of drugs sold in California.
Path to the ballot
$4,635,466 was paid to Kimball Petition Management to qualify the measure for the ballot.[2]
Campaign spending
The campaigns for and against Proposition 79 were heavily related to the campaigns for and against Proposition 78. This chart displays spending on both campaigns; if a campaign committee registered itself as in favor of one proposition and opposed to the other, its spending is reflected in more than one column in the table.[3],[4]
| Committee name | Spent for 78 | Spent against 78 | Spent for 79 | Spent against 79 |
|---|---|---|---|---|
| Pharmaceutical Research & Manufacturers of America, Yes on 78 and No on 79 | $85,998,683 | $85,998,683 | ||
| Californians for Affordable Prescriptions, Yes on 78 | $32,767,788 | |||
| Yes on 79 and No on 78, a Coalition of Consumer Organizations for Affordable Prescription Drugs | $811,356 | $811,356 | ||
| Californians against Arnold's Special Interest Election, No on 73, 74, 75, 76, 77 and 78 and Yes on 79 & 80 | $47,960 | $47,960 | ||
| Alliance for a Better California, Yes on Proposition 79 and 80 | $38,754,725 | |||
| Californians Against the Wrong Prescription, No on 79 | $37,351,418 | |||
| Biotechnology Industry Organization Committee Against Proposition 79 | $922,583 |
See also
External links
- Official California Voter Guide to Proposition 79
- Smart Voter Guide
- California Voter Foundation Guide
- Official election results
References
- ↑ The 2005 special elections in California
- ↑ Expenditure detail for Yes on 79
- ↑ Campaign spending on Proposition 78
- ↑ Campaign spending on Proposition 79
