A single-payer healthcare system in California would cost approximately $400 billion annually, according to a legislative analysis released ahead of the proposal’s hearing in a key fiscal committee, the Los Angeles Times reported on Tuesday.
Questions about the cost have been up to now one of the largest and most important unanswered questions about the plan to overhaul the state’s healthcare coverage.
The bill would get rid of health insurance companies, include coverage for those in the country illegally and have no out-of-pocket costs for residents, the Washington Examiner reported.
The analysis found that although the price tag is $400 billion per year, the new costs would be less, in the range of between $50 billion and $100 billion annually.
This is so because some $200 billion of existing funds would be repurposed to go towards the new system and projections estimate that universal healthcare would also reduce spending by employers and employees statewide, according to the Times.
The extra funds needed for the system could be raised by a new 15 percent payroll tax on employers, the analysis proposed.
But for that to happen, two-thirds of California’s Assembly and Senate must approve it. However, even if the bill was signed into law in the state, President Donald Trump would also have to approve the waivers, because Medicare and Medicaid would be expected to pay for about half the program.
The Examiner pointed out that attempts by other states at a single-payer system have failed because of concerns about costs, such as in Colorado and Vermont.
Source: newsmax – California’s Single-Payer Healthcare Would Cost 0 Billion