Vital Times 2017 - 23

would come from increasing gross business taxes and the
other half from a payroll tax increase. The nurse's union
commissioned their own analysis by UMass Amherst
which yielded a slightly lower number of $330 billion,
with equal revenue from new sales and business taxes in
combination with repurposed Medicare and Medi-Cal
funds. Regardless, SB 562 is NOT free healthcare. And
the means to achieve funding has not been fully vetted.

California's Single-Payer Healthcare
Proposal
How much will it cost and who foots the bill?
Legislative analysis says: $400 billion*

$200 billion

Paid: Through possible
15% payroll tax raise

$200 billion

Existing federal, state and
local funds

UMass Amherst analysis: $330 billion*

$225 billion

Repurposed Medicare
and Medi-Cal Funds

$106 billion

New tax revenues**

*Cost assumes federal waivers.
**2.3% gross receipts tax on businesses; 2.3% sales tax
coupled with a tax credit for families that currently
qualify for Medi-Cal.
Source: Times reporting
In addition, the proponents of a single payer system face
three formidable obstacles:

*
*

*

Gubernatorial approval: Governor Brown has
voiced concerns about SB 562.
Voter approval to bypass current State spending
limits: Is a Proposition for the November
ballot in the works?
Federal Waiver to repurpose Medicare
and Medicaid funds: Would the Trump
Administration be willing to give California the
green light?

The discussion regarding a single payer system is not
going away. It will be front and center as the 2018
election cycle revs up. Lt. Governor Gavin Newsom, the
current front-runner in the gubernatorial race, claims the
only thing stopping single-payer California is a lack of
political leadership. Newsom, of course, was successful in
bringing universal coverage to the city of San Francisco
during his tenure as mayor. The program, Healthy San
Francisco, was instituted over ten years ago. By definition,
it is not truly "insurance" as it is not portable outside
San Francisco and you must have no other options for
coverage.
Recently, the California Medical Association has
launched a new coalition of more than 100,000 health
professionals, including Kaiser Permanente, California
Orthopedic Association, CalACEP, and the CSA, to
actively oppose SB 562 stating simply, "it would dismantle
the health care marketplace and destabilize California's
economy. We are disturbed that the current federal and state
health care debate is disconnected from practical realities
that providers experience in communities throughout
California." For more information, go to https://www.
protectaccessca.org.
The Coalition believes in the following principles:
*

*

Aggressively protect and expand access to
health care by building upon the successes of
the Affordable Care Act.
Work to expand access to care to the remaining
2-3 million Californians who are still without
coverage.
(continued)

Annual	Publication	2017		|	 	23
https://www.protectaccessca.org https://www.protectaccessca.org
Table of Contents for the Digital Edition of Vital Times 2017
