​(January 26, 2012) A California Chamber of Commerce-opposed “job killer” bill that creates a government-run, multibillion-dollar socialized health care system is awaiting a vote on the Senate floor.

SB 810 (Leno; D-San Francisco) is supported by an unspecified "premium structure" to be determined by 2014 and prohibits the sale of any private health care insurance.

Federal Law in Motion

In opposing the bill, the CalChamber commented that SB 810 becomes irrelevant as a vehicle to provide universal coverage for California considering the 2009 enactment of the federal law that comprehensively reformed the health care system nationally. The new law creates universal health care throughout the country to be implemented over the next several years.. The California Legislature has been, and will continue to be diligently implementing the federal law and should not be derailed by creating a new system.

Furthermore, CalChamber opposes a government-run system and supports the role of the Legislature and the administration in implementing the federal reforms.

New Bureaucracy

The new bureaucracy proposed by SB 810 is to be funded through premiums set by an appointed commission and paid by all employers. To balance the budget for the program, premiums can be increased, benefits and provider payments reduced, and copayments and deductibles imposed. Further added tax burdens on individuals and employers will lead to declining General Fund tax revenues and job loss that jeopardizes the state’s already-troubled economy without addressing escalating medical costs.

Wrong Approach

Although SB 810’s goal of providing health coverage for all Californians is laudable, establishing a single-payer statewide bureaucracy is the wrong approach. The CalChamber fundamentally disagrees with the two major premises of the bill: that government systems are more efficient than private business; and that a single-payer system would be less costly than the current private system.

California voters have twice rejected a government-run health care system—most recently in Proposition 72 in 2004 and previously in 1994. Focus groups and numerous opinion polls on health care reform have reinforced that California residents do not want a single-payer, government-run system. Furthermore, Congress rejected the notion of a single-payer system when enacting comprehensive reform. California should not create a new system that would conflict with the recently enacted federal program.

Action Needed

SB 810 is awaiting a vote on the Senate floor. Contact your senator and urge them to oppose SB 810.

Staff Contact: Marti Fisher