EDITORIAL: Universal health care for California? In Fantasyland, maybe. - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
May 23, 2017 Newswires
Share
Share
Post
Email

EDITORIAL: Universal health care for California? In Fantasyland, maybe.

Sacramento Bee (CA)

May 23--Sen. Ricardo Lara deserves credit for delving into the complex reality of health care.

But for now, his prescription, a California-only universal health care system, looks less like a salve for the repeal of the Affordable Care Act than a political rallying cry -- and a fiscal fantasy.

The Los Angeles-area Democrat's Senate Bill 562 fails to answer the most basic reality-based questions, such as how the state, employers and health care consumers would pay for a single-payer, government-run health care system.

Advocates for a California-only single-payer program must have swallowed hard Monday when they read a legislative staff report that placed the annual cost at $400 billion, given that the entire $184 billion state budget wouldn't cover even half of that.

Roughly $200 billion of that price tag would come from a new tax, which would be the equivalent of 15 percent of earned income, says the staff report issued in advance of the Senate Appropriations Committee hearing. Some costs to employers and employees would fall, but new spending would be, oh, $50 billion to $100 billion a year.

Lara has support from the city of Los Angeles, Santa Clara and Marin counties' boards of supervisors, and Insurance Commissioner Dave Jones, a candidate for state attorney general. His most adamant backer is the politically aggressive California Nurses Association, a union that has made single payer its signature issue.

The union's belief in single payer is a reason why it's backing Lara's candidacy for insurance commissioner and Lt. Gov. Gavin Newsom's run for governor, and why it was all-in for Vermont Sen. Bernie Sanders' presidential campaign.

As Appropriations Committee chair, Lara has the clout to move the bill through the Senate and Assembly. A final version would need voter approval, perhaps in 2018, when he and Newsom would be on the ballot, too.

But besides the matter of how to pay for it, the bill fails to say how the state, which would be entrusted with managing the brave new health care system, would curb health care costs. As drafted, it would permit patients to gain access to medical services in ways that would be "largely unconstrained."

In fact, the analysis noted, the "system envisioned in this bill strongly limits the state's ability to control costs." Californians would not, for example, need prior approval before seeing specialists, and the analysis adds that health care providers and drug companies would "strenuously" resist any attempt to negotiate lower prices. So the bill also would establish a whole new cause for Sacramento's already formidable lobby corps.

Then there's the Achilles heel of many state programs: state computers. Lara's bill would necessitate digital record-keeping for the health care of 40 million Californians. The state has been attempting for a decade to develop software to track Medi-Cal claims, without success.

Republicans in Congress are playing politics with people's health care as they contemplate eviscerating the Affordable Care Act. Well-meaning California Democrats need to be careful that they don't do the same, from the left.

Whatever Obamacare's limitations, it has helped millions of Californians gain access to care. Before legislators join the nurses union's effort to revolutionize health care, they need to fully spell out the real world costs and implications of Lara's proposal. They aren't close yet.

Sign up

Get on The Take. Read the influential voices on California and national politics and issues. Sign up here.

___

(c)2017 The Sacramento Bee (Sacramento, Calif.)

Visit The Sacramento Bee (Sacramento, Calif.) at www.sacbee.com

Distributed by Tribune Content Agency, LLC.

Older

Former Owen County auditor leaves prison, still owes debt to county

Newer

Global shares mixed as blast in Manchester rattles investors

Advisor News

  • CT governor’s candidates claims: What’s true, and what’s misleading
  • Retaining clients by giving them a memorable experience
  • Addressing the longevity paradox
  • Employers shift focus from retirement access to financial outcomes
  • Helping widowed clients navigate their new financial reality
More Advisor News

Annuity News

  • National Life Group expands annuity portfolio
  • AM Best to Join Life/Annuity Insurance-Focused Panel Discussion at Capitol Forum Event
  • USAA Earns No. 1 Ranking in JD Power Individual Annuity Study for the Third Consecutive Year
  • How flexible annuities fit today’s retirement portfolios
  • Foresters Financial appoints Tom Ross as chief distribution officer for U.S. annuity sales
More Annuity News

Health/Employee Benefits News

  • Reports Outline OBGYN and Reproduction Study Findings from Health Care Cost Institute (Hospital Bypass Among Rural Obstetric Patients With Commercial Health Insurance): OBGYN and Reproduction
  • Madison Faces Higher Library and Health Insurance Costs as Officials Look Ahead to 2027 Budget
  • The percentage of people without health insurance is growing
  • MORE THAN 4 MILLION MEDICARE BENEFICIARIES WILL HAVE THEIR MEDICARE ADVANTAGE OR STAND-ALONE PRESCRIPTION DRUG PLAN TERMINATED AT THE END OF 2026
  • Plans with cheaper premiums are risky business for Americans seeking lower healthcare costs
More Health/Employee Benefits News

Life Insurance News

  • Palmetto Heritage and Atlantic Coast Life Announce Discussions Regarding Potential Acquisition
  • Jury finds insurance company acted in bad faith, awards Nebraska woman $11.3M
  • AM Best Affirms Credit Ratings of GIG Insurance – Egypt S.A.E.
  • Symetra Named to Fortune Best Workplaces For Women™ List for Fifth Consecutive Year
  • AM Best to Join Life/Annuity Insurance-Focused Panel Discussion at Capitol Forum Event
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Benefits Studio Launches to Fill the Missing Middle of Benefits Navigation at $49/mo
  • Lauren Sinnott Named to Ragan’s Top Women in Marketing Awards, Class of 2026 
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.