(January 26, 2010) A California Chamber of Commerce-opposed “job killer” bill that creates a new government-run, multibillion-dollar socialized health care system based on a yet-to-be specified “premium structure”—in essence, a tax on all employers—is awaiting a vote on the Senate floor this week.
SB 810 (Leno; D-San Francisco) also establishes a premium commission to impose a premium for all employers, which is essentially a tax.
The new bureaucracy is proposed to be funded through premiums set by the appointed commission, and paid by all employers. To balance the budget for the program, premiums can be increased, benefits and provider payments reduced, and co-payments and deductibles imposed.
The CalChamber is pointing out that further added tax burdens on individuals and employers will lead only to declining General Fund tax revenues and job loss while jeopardizing the already-troubled economy—all without addressing escalating medical costs.
Mistaken Premises
Although the goal of the legislation to provide health coverage for all Californians is a laudable one, establishing a single payer statewide bureaucracy is the wrong approach. The CalChamber fundamentally disagrees with the two major premises of the bill:
- government systems are more efficient than private business, and
- 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 in another initiative 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.
No Choice
SB 810 takes away choice. Under current law, those who wish to buy more, less or different coverage than others often can make those choices, just as those who have other priorities can exercise them in the market. Under SB 810 one size fits all, no matter what an individual’s preference might be.
The CalChamber shares the author’s concerns regarding access to and affordability of healthcare. While the CalChamber agrees that health care reform is important, California should not create a new system that would be different than that of a new federal program. With Congress still working on national health care reform as a priority, California should not get out in front of the national effort. The CalChamber believes that only by working together can we can identify an appropriate course of action to address healthcare for the uninsured while maintaining quality of care.
Action Needed
SB 810 is scheduled for a vote on the Senate floor this week. Urge your senator and committee members to oppose SB 810.
Staff Contact: Marti Fisher