- Last week, a proposal to create a single payer system in California (called AB-1400) was approved by the State Legislature Commission.
- California had previously considered establishing a single-payer healthcare system in 2017, but the bill was quickly rejected.
- The single payer system is common in other similar countries like the United Kingdom, but not in the United States.
California aims to introduce state-funded single-payer health care systems to provide residents with quality medical care and long-term care.
Last week, the State Legislature Commission approved a proposal to create System AB-1400.
The bill is currently heading to the California State Legislature and will be voted on by January 31st.
California had previously considered establishing a single-payer healthcare system in 2017, but the bill was quickly rejected due to unresolved hurdles such as how to fund the system.
Single payer systems like the AB-1400 have been proposed several times at the US state and federal levels, but none have been fully enacted.
Medical professionals say it is unclear how likely it is that the AB-1400 will pass.
While some industry groups oppose the bill, health authorities can address concerns by coordinating with hospitals and health professionals to establish a fair and equitable health system.
“California citizens are facing a series of trade-offs here. Increasing system efficiency in exchange for lower service point costs, higher taxes, and fewer options for paying medical costs. And, in return, the potential to improve predictable and equitable access to health care. Brigham Walker, research assistant professor of health policy and management at the Tulane School of Public Health and Tropical Medicine in New Orleans, said: I am saying.
According to Dr. Dylan Robbie, Associate Professor of Health, Society and Behavior at the University of California, Irvine Public Health Program, the system builds on a service pricing model similar to Medicare.
Proponents claim that the COVID-19 pandemic sheds light on race, ethnicity, income, and location-based care gaps and disparities.
The single payer system helps eliminate costly premiums, out-of-pocket payments, and deductions, close gaps, and increase access to care for all.
Roby, who co-authored multiple analyses investigating the cost and potential issues of the AB-1400, states that some issues need to be resolved for the system to succeed.
Private providers in the state can continue to operate, but they will need to be priced to receive standardized payment rates.
“Given the integrative care providers that make up the majority of California care providers, such as the Kaiser Permanente medical group and the Kaiser Foundation Hospital, a significant number of issues need to be resolved,” Roby said. ..
Programs like AB-1400 can also have a negative impact on healthcare professionals.
For example, if the payment for the provider’s service matches the Medicare fee, hospitals and doctors (usually charging a higher fee than the Medicare fee) may be charged lower.
“The pricing committee needs to balance these concerns to ensure efficiency and fairness,” Roby said.
“The AB1400 doesn’t just change everything on day one. It’s necessary to be careful to understand the amount of providers paid, how to raise some of it, and how to navigate the federal exemptions for Medicare and Medicaid. There is a stakeholder process, etc., “Roby added.
CalMatters reported that legislative analysis estimates that the cost of a single payer system will be between $ 314 billion and $ 391 billion annually.
Roby states that the system is likely to be partially funded by tax increases.
According to Roby, the amount of funds required depends on the benefits included in the single payer system, as well as the payments issued to the provider.
“If the payment to the provider is based on lower Medicare fees, the program will probably be fairly affordable,” Roby said.
Proponents of the single payer system essentially readjust the health premiums currently paid by individuals and employers, so the system costs no more and requires significant tax increases. Insisted that it would not.
Single payer healthcare systems are generally considered to be less expensive than multiplayer privatized healthcare systems.
“Healthcare providers in California report more than $ 1 billion annually in uncompensated health care costs, and the limited network of healthcare providers causes many patients to face unnecessarily high bills. As a result, increasing the predictability of a single payer system could reduce the cost burden for both healthcare providers and patients, ”Walker said. ..
California has proposed a bill to enact a single-payer healthcare system to provide quality and long-term care to all California residents.
So far, multiple single payer systems have been proposed at the state and federal levels, but none have been implemented. The system follows a service pricing model, similar to Medicare.
It is unclear how likely it is that the bill will be passed. Still, medical system experts say that some issues and cost considerations need to be resolved before establishing this system.
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