Single-payer health plan could cost $400B annually in California

Malcolm Fuller
May 24, 2017

Jerry Brown's proposed $124 billion general fund budget for next year.

“Total new spending required under the bill would be between $50 billion and $100 billion per year, ” the report said.

Californians spent more than $350 billion on health care in 2016.

"The additional $200 billion would need to be raised from new taxes". The state-run system would supplant existing employer health insurance in California, as well as coverage through public programs such as Medicaid and Medicare.

The plan going to the state Senate Appropriations Committee on Monday could cost Californians more and faces substantial hurdles to enact.

The object of their desire, Senate Bill 562, was the biggest item on the committee agenda, and a staff analysis laid out its huge cost - $400 billion a year, or more than three times the entire state general fund budget. It would take a 15 percent payroll tax to raise enough money, the analysis said.

A well-known effort to create a single-payer plan was in Vermont, but it failed in 2014 after the state couldn't figure out how to finance it. The state has never gotten anything right in health care.”. The state would contract with hospitals, doctors and other health care providers and pay the bills for all residents similar to the way the federal government covers seniors through Medicare.

US extends Iran nuke sanctions relief, adds other sanctions
According to Reuters , some of the waivers were set to expire this week unless they were extended by the commander in chief. The State Department also released a report on Iran's human rights violations that's required by Congress every six months.

The bill must be approved on the state Senate floor by June 2 in order to advance to the Assembly. What it doesn't include is a detailed plan to show where the rest of the funds would come from.

"Needless to say, doubling California's tax burden would give them the highest taxes in the country by far", Joe Henchman, vice president of state projects for the Tax Foundation, told Reason on Tuesday.

During the convention, the leading Democratic hopeful, Lt. Gov. Gavin Newsom, embraced the leftist agenda, including free community college educations.

The proposal "will cost employers and taxpayers billions of dollars and result in significant loss of jobs in the state", warns the California Chamber of Commerce.

There's one other thing that's fairly consistent among the states that have proposed single-payer systems in recent years: When voters find out how much a single-payer system will cost, they are much less likely to support one.

Kaiser Health News (KHN) is a national health policy news service.

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