California has enacted the nation’s first universal health insurance plan, providing medical services to all residents, and a wide range of new taxes on individuals and businesses, under a proposal announced Thursday by a group of state Democrats. Raised by.
Some of the ambitious planning policy details were released last year, but no way to cover them was determined. The proposal, which is currently in separate legislation, faces significant hurdles in the coming months. The first is the State Capitol, where there is opposition from groups representing doctors and insurance companies, which must be approved by the voters in the ballot box. Taxes in the California Constitutional Amendment.
“Tell us that the single payer’s health care system is financially sound, a wiser health policy to follow, and a moral imperative if we care about human life. There are countless studies, “said Congressman Ashkara (D-San Jose), the author of the proposal, said Thursday.
Efforts to create a single-payer health system in which the health care costs of all residents are covered by a government-run fund have been widely debated in California for many years. Proponents say the cost of providing care to state residents goes down without the cost of managing a private insurance plan.
They also point out the costs borne by Californians under a streamlined medical plan with high deductions and out-of-pocket costs. If California creates a state-run program that blends state and federal dollars, the costs they claim are gone.
“What we’re trying to do is put dozens of these funds in one bucket, whether it’s private insurance, employers, or Medi-Cal,” Kalra said.
Legislative efforts to move ideas forward have failed over the last few decades and lack the extensive political support needed for a historic review of the healthcare system. Kalra’s latest efforts were quickly criticized by a coalition of powerful politicians, including the California Medical Assn. And California Hospital Assn. They confront one of the loudest supporters of the single payer plan, the California Nurses Assn.
Act of Parliament 1400 creates “Cal Care”. It is a system managed by an independent board that promises access to all physicians, regardless of network or various medical services. The new entity will encourage providers to pay for their health care costs and seek to negotiate low prices for prescription drugs. The plan includes long-term care coverage and services for the elderly and disabled, and will remove barriers based on the patient’s immigration status.
Thursday’s announcement will undoubtedly begin a controversial process and will probably be complicated by the politics of being an election year. Governor Gavin Newsom, who faces re-election in the fall, campaigned for public office four years ago, partly because of support for the single-payer health care system.
“It’s about access,” Newsom said in a speech at the 2018 California Democratic Convention. “It’s about affordability, and it’s about time. If these Democrats couldn’t do it, there wouldn’t be social security or Medicare.”
The governor’s spokesperson did not immediately respond to requests for comment on the new initiative. But Bay Area Democrat Kara, with support from a group of Democrats, reminded those attending the State Capitol event on Thursday about the governor’s campaign platform.
“It’s not negligent to do nothing,” Kalra said of a political promise that he hadn’t made a plan for. “In fact, it’s the cruelest behavior while millions of people are suffering under our supervision.”
The proposed tax increase in the plan may present the most difficult political hurdles. The constitutional amendment requires a majority vote in both the state legislature and parliament, and requires voter ratification in the June or November state-wide elections. Democrats have held majority seats in both homes for most of the decade, but rarely find sufficient support within their ranks due to widespread tax increases.
The constitutional amendment will impose a new excise tax on businesses, equivalent to 2.3% of total annual revenue of over $ 2 million. In addition, a new payroll tax equivalent to 1.25% of total annual wages will be created and collected from companies that employ more than 50 employees. Employers with workers who earn more than $ 49,900 a year will be required to pay an additional payroll tax.
Everyone except the lowest-income Californians also have to pay more taxes. The proposed constitutional amendment will raise personal income tax on salaries to more than $ 149,509 per year. For people at that level, they will be paid more as their income rises. All Californians reporting annual taxable income in excess of $ 2.5 million will be charged an additional 2.5%. And the increase in personal income tax paid for health care plans can rise with future inflation.
The scale and impact of the tax increase will be central to the discussion. Kara and other supporters claim that taxes are less than the amount currently paid by employers and Californians for private insurance.
Rob Lapsley, president of the California Business Roundtable, said the proposal would impose a financial burden on those suffering from the financial impact of the COVID-19 pandemic, and most Californians now need it. You can get treatment at.
“California already has almost universal insurance,” Låpsley said in a statement. “AB1400 eliminates healthcare options and forces everyone into untested government-run programs.”
The constitutional tax increase was introduced this week, but the AB1400 was introduced last year. As a holdover proposal from 2021, Congress must be cleared by January 31st. ..
Jordan Cunningham (R-Paso Robles), Vice-Chairman of the Parliamentary Rules Committee, said:
The bill will be considered by the Parliamentary Health Commission next week. House Speaker Jim Wood (D-Santa Rosa), chairman of the panel, said Thursday that he would vote in favor of the single payer’s plan. In the Senate.
