This week, California lawmakers will take up the latest attempt to get all state residents covered under the same health plan 鈥 an idea referred to as single payer health care 鈥
that鈥檚 been sparking debate at the Capitol for the past five years.
Under the new plan, dubbed CalCare, all Californians would be insured by the same entity and would be able to access any doctor, regardless of network. Supporters argue that this
will reduce price gouging and give all residents equal access to care.
is sponsored by the California Nurses Association, who. At the time, the proposal had an estimated and no funding source.
After it failed, gathered to discuss options for reforming the state鈥檚 health care delivery system. The committee put together recommendations for how to make coverage more affordable and accessible for all Californians, which
informed legislation that emerged in the following years.
The new proposal would create a tax to fund the single payer option. The tax would apply to companies earning more than $2 million, businesses with 50 or more employees and
individuals making more than roughly $150,000 a year.
Carmen Comsti, lead regulatory policy specialist with the nurses association, says the tax will generate somewhere between $160 and $170 billion annually.
鈥淲e are talking about ensuring that everybody gets comprehensive benefits without copays or deductibles,鈥 Comsti said.
Opponents argue that a single payer system eliminates choices for those who might prefer to stay on a private plan, and that legislators should work instead to make sure
everyone is insured and that all coverage is affordable 鈥 a model often referred to as
A coalition that includes the California Association of Health Plans, the California Hospital
Association and the California Medical Association issued a release about the new proposal.
鈥淐alifornians need and deserve a stable health care system they can rely on at all times, especially now,鈥 wrote coalition spokesperson Ned Wigglesworth. 鈥淲e urge the
Legislature to reject this legislation that will risk the health care of the residents of our state when they need it most.鈥
The coalition also voiced concern about the proposed tax structure being an economic burden to California families.
Comsti said the taxes are necessary to reform an 鈥渦nsustainable system.鈥 鈥淲e鈥檙e already paying for all the costs of healthcare in California,鈥 she said. 鈥淲ith single payer health
care, we could pay less overall.鈥
Gov. Gavin Newsom during his campaign, but more recently has been an advocate for options that build off the current system.
Assembly Health Committee Chair Jim Wood (D-Santa Rosa) that he will vote to move the proposal forward, citing frustration with high drug prices, insurance company profits, claim denials and other woes of the current, fragmented health care system.
鈥淧eople are angry,鈥 Wood told CapRadio. 鈥淭hey're frustrated, they're scared to get sick and the system is broken.鈥
Wood said the proposal has 鈥渁 ways to go鈥 and that he will put his concerns in writing for the bill鈥檚 author, Ash Kalra (D-San Jose). He said the primary reasons single payer has
failed in the past have been cost, and opposition from health plans and other business interests.
He said it鈥檚 important to keep discussing all potential solutions, even if they don鈥檛 ultimately cross the finish line.
鈥淔or me, no is not the answer,鈥 Wood said. 鈥淲e're going to have to resolve this and we're going to have to make improvements in the system because it's not going to go away.鈥
Wood is also pushing his own bill, AB 1130, which would establish an Office of Health Care Affordability to analyze spending across the health care system and propose ways to cut
costs related to plans, hospitals and prescription drugs.
To move forward, AB 1400 must pass the health committee by Jan. 14 and pass the Assembly by Jan. 31.
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