Tags: california | single payer | healthcare

California Single-Payer Healthcare Bill Could Cost $400 Billion

Image: California Single-Payer Healthcare Bill Could Cost $400 Billion

Supporters of single-payer health care march to the Capitol Wednesday, April 26, 2017, in Sacramento, California. (AP Photo/Rich Pedroncelli)

By    |   Tuesday, 23 May 2017 05:21 PM

A single payer healthcare bill introduced by lawmakers in California is expected to have a price tag of $400 billion dollars, more than three times the entire current budget of the state, which is $125 billion, according to an analysis released Monday.

The plan would cover all residents of California, including illegal immigrants, and users would not pay any premiums, copays, or deductibles, the Los Angeles Times reported.

Democrats proposing the legislation have not said how they will pay for the plan. Sen. Ricardo Lara said he will propose a plan to raise tax revenue soon, The Associated Press reported.

Some of the cost could be offset by folding Medicare and Medicaid funding into the statewide system, if the Federal government will allow that to happen, the Times reported. Spending by employers and employees in the state would likely be reduced as well, offsetting new taxes that would have to be put into place. The estimated gap between current spending and the new plan’s spending is estimated to be $50 to $100 billion.

The analysis said that a 15 percent payroll tax on earned income might be necessary to supply the needed revenue. The proposal does not have a specific tax proposal in it, which means it could skirt the two-thirds vote requirement necessary for measures that contain a new tax, the Times reported.

The analysis said that the bill would necessitate “unprecedented changes to a mature healthcare system,” the Times reported. “There is tremendous uncertainty in how such a system would be developed, how the transition to the new system would occur, and how participants in the new system would behave,” the analysis continued, the Times said.

Twitter users were incredulous about the cost of the plan.

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A single payer health care bill introduced by lawmakers in California is expected to have a price tag of $400 billion dollars, more than three times the entire current budget of the state, which is $125 billion, according to an analysis released Monday.
california, single payer, healthcare
352
2017-21-23
Tuesday, 23 May 2017 05:21 PM
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