The price tag on universal health care in California is bigger than state’s budget

government solve all problems

Shocker, not.

From Sacramento Bee: The pricetag is in: It would cost $400 billion to remake California’s health insurance marketplace and create a publicly funded universal health care system, according to a state financial analysis released Monday.

California would have to find an additional $200 billion per year, including in new tax revenues, to create a so-called “single-payer” system, the analysis by the Senate Appropriations committee found. The estimate assumes the state would retain the existing $200 billion in local, state and federal funding it currently receives to offset the total $400 billion price tag.

The cost analysis is seen as the biggest hurdle to create a universal system, proposed by Sens. Ricardo Lara, D-Bell Gardens, and Toni Atkins, D-San Diego.

It remains a longshot bid. Steep projected costs have derailed efforts over the past two decades to establish such a health care system in California. The cost is higher than the $180 billion in proposed general fund and special fund spending for the budget year beginning July 1.

Employers currently spend between $100 billion to $150 billion per year, which could be available to help offset total costs, according to the analysis. Under that scenario, total new spending to implement the system would be between $50 billion and $100 billion per year.

“Health care spending is growing faster than the overall economy…yet we do not have better health outcomes and we cover fewer people,” Lara said at Monday’s appropriations hearing. “Given this picture of increasing costs, health care inefficiencies and the uncertainty created by Congress, it is critical that California chart our own path.”

The idea behind Senate Bill 562 is to overhaul California’s insurance marketplace, reduce overall health care costs and expand coverage to everyone in the state regardless of immigration status or ability to pay. Instead of private insurers, state government would be the “single payer” for everyone’s health care through a new payroll taxing structure, similar to the way Medicare operates.

Lara and Atkins say they are driven by the belief that health care is a human right and should be guaranteed to everyone similar to public services like safe roads and clean drinking water. They seek to rein in rising health care costs by lowering administrative expenses, reducing expensive emergency room visits and eliminating insurance company profits and executive salaries.

In addition to covering undocumented people illegal aliens, Lara said the goal is to expand health access to people who, even with insurance, may skip doctor visits or stretch out medications due to high co-pays and deductibles.  “Doctors and hospitals would no longer need to negotiate rates and deal with insurance companies to seek reimbursement,” Lara said.

Insurance groups, health plans and Kaiser Permanente are against the bill. Industry representatives say California should focus on improving the Affordable Care Act. Business groups, including the California Chamber of Commerce, have deemed the bill a “job-killer.”

“A single-payer system is massively, if not prohibitively expensive,” said Nick Louizos, vice president of legislative affairs for the California Association of Health Plans. “It will cost employers and taxpayers billions of dollars and result in significant loss of jobs in the state,” the Chamber of Commerce said in its opposition letter.

Underlying the debate is uncertainty at the federal level over what President Donald Trump and the Republican-controlled Congress will do with Obamacare. The House Republican bill advanced earlier this month would dismantle it by removing its foundation – the individual mandate that requires everyone to have coverage or pay a tax penalty.

Republican-led efforts to repeal and replace Obamacare is fueling political support for the bill, Atkins said at a universal health care rally this past weekend in Sacramento hosted by the California Nurses Association, a co-sponsor.

“This is a high-ticket expense…We have to figure out how to cover everyone and work on addressing the costs in the long-term — that’s our challenge,” Atkins said. “I’m optimistic.”

The bill has to get approval on the Senate floor by June 2 to advance to the Assembly. A financing plan is underway, which could suggest diverting money employers pay for worker’s compensation insurance to a state-run coverage system.

Lara said he believes California can and should play a prominent role in improving people’s lives. “We can do better,” he said.

DCG

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13 responses to “The price tag on universal health care in California is bigger than state’s budget

  1. Governor Moonbeam Brown has invited ALL MEXICANS to move to California. According to prominent economist Milton Friedman,
    you cannot have open borders AND a welfare state with universal
    “free” medical coverage. Every sickie will head to California. Seems
    like they’re already here. As one of my female students said years
    ago “If you have a baby, the government gives lots of money.”

    Liked by 3 people

  2. Alright! All of Mexico will now move to California!

    Liked by 2 people

  3. Pingback: The price tag on universal health care in California is bigger than state’s budget – NZ Conservative Coalition

  4. Free stuff-brought to you by your local communist, I mean liberal/progressive/utopian cell of snowflakies.

    Liked by 3 people

  5. CA has had a mass-exodus of its working, tax-paying base. Believe me, 2 yrs ago, CA conducted a huge audit of state tax-payers back to as far as legal…with us, it was 7 yrs…..Which signaled to us that, when there are not enough tax-payers to support the present entitlement budgeting, they became creative with a “do-over” of state taxes—which, BTW, means, it could include all those who paid taxes as far as 7 years previous, but subsequently fled the state (mostly to go to Texas) nearly a decade before (aka, the “Obama reign”)….what a clever way to “recoup” your tax base! I bet they hired a sort of “Eric Holder of State Taxes” to explore every nook and cranny for this idea. Pretty much, if this one-payer health thing goes through and takes away my quality health care that I have through my employer….one of the reasons I’m still working at all and not retired….I’m definitely OUT OF HERE, and will be over-joyed to spend my retirement dollars in a more SANE state.

    Also…as to this covering illegals—here’s proof that there is a “second nation” operating here outside the Constitution of the United States of America: my husband is a state of CA employee and has received notifications/emails by the state that, if he is “caught” turning in an illegal alien to ICE…even a criminal illegal alien…he will be punished by the State of CA by the confiscation of his pension. Forever. Period. At some point, pretty sure California will end up needing a revolt in the form of a tax-payer “Magna Carta” to rid itself of the tyranny of its own government…..but, also pretty sure it will take longer than I have to spend on earth…..nevertheless…it will come one day.

    Liked by 4 people

    • I’m truly sorry to learn of the wretched treatment you & your husband have had by the gubbmint of Kalifornia. You should consider immigration to Canada, with intent to live in one of the micro-climates that is as good as the East Bay-Oakland areas: 29″ precipitation and enough degree days to rate as climate zone 7a, which is all of the Southern tip of Vancouver Island, White Rock, Delta, and adjacent Mainland communities.

      Your family, as well as Eo’s, will be welcome; you’ll soon discover the magical healings when one lives in a nation that’s not dependent on sales from its military-industrial complex to bring home its currency. Please keep this close to yr chest; share only with like-minded people such as yourselves.

      Like

  6. All taxpayers in California must revolt in unity. Deny Governor Moonbeam and his tyrannical administration the funding needed to perpetrate this insanity. Stop feeding the beast until it starves to death.

    Liked by 3 people

  7. “No funding plan doesn’t stop lawmakers from moving health care bill along”
    http://www.sacbee.com/news/politics-government/capitol-alert/article152728544.html
    bunch of nutjobs….maybe they can add the cost to the ridiculous high-speed rail budget….their liberalism/progressivism/communism has morally and financially bankrupted the state of california.

    Liked by 1 person

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