California Health Care – A New Adventure

California Health Care – A New Adventure

The fact that many leftist are now looking toward a single payer system is an admission they understand Obamacare is a failure. The problem is the price tag will not only be costly but will add additional tax burdens to the middle class in exchange for “free health care.”  There is a new California Health Care bill that is currently under consideration by the California Legislature.

Governor Jerry Brown

Vermont abandoned its plan for a single payer health care system a couple of years ago.  The plan would have doubled the Vermont budget.  Not only that, it would depend upon high taxation beginning with a premium 9.5% tax rate on individuals.  Vermont governor Pete Shumlin would have exempted large companies with health care plans.  The question remains, how can single payer work if you have competing plans?  The final problem is that Vermont needed an infusion of federal dollars.  When there was no guarantee this money would be available, the plan ended.  If a state that sends a socialist to the US Senate can’t make it work, name a state where it could.

Additionally, in Colorado, voters had the option of approving a single payer system.  However, in a study released by the Colorado Health Institute, the state couldn’t cover the costs.  It would more than triple the amount of taxes needed.  The middle class would have been soaked along with businesses.  As the report noted:

“Simply put, the revenue would not be sufficient. CHI’s model projects that the revenue from taxes and federal funds would fall just short of paying ColoradoCare’s bills in the first year – with widening deficits in each subsequent year.”

This means Colorado voters could not even cover the cost even with tripling the taxes.  The end result was higher taxes, benefit cuts or reduced payments to medical providers and hospitals to attempt to achieve long-term solvency.  A 21 member board would decide who gets care and what care would be provided.

Now Democrats in California are looking at their own single payer plan as if recent tax increases wasn’t enough.  California has the highest tax rates in the United States.  Now, they want to make sure the exodus continues unabated with even more taxes.  A 15% payroll tax on businesses and individual would be imposed according to one report to help finance this.

The present plan for California Health Care will exceed the entire State budget.  The program would cost 400 billion dollars!  (This is double the current California budget).  California expects 200 billion dollars to come from the Federal government to offset the cost.  But, this still means they will have to raise an additional 200 billion in taxes to make up the difference.

One plan, according to the Sacramento Bee reported, “Employers currently spend between $100 billion to $150 billion per year, which could be available to help offset total costs.  To get that cash into the California system, the state would have to impose new taxes to seize those funds — and even then, California’s new health-care system would still come up short by between $50 to $100 billion every year.”

Yes, this will still be not enough.  They will still be between 50 and 100 billion dollars short!  This on top of recent tax increases.  So Jerry Brown and his Democratic Party are doing their best to ensure California sinks due to a financial earthquake.

There are experiences with single payer.  While many leftists view Medicare as a model for national single payer, Medicare and Medicaid restrict payments to providers while their enrollments have expanded.  This causes many providers restricted access to new patients.  The Veterans Administration has failed our veterans with long waits, resulting in deaths along with rampart corruption to protect bureaucrats.

Single Payer California Health Care will not make it less expensive.  Instead, it will cost the Middle Class more than the benefits they will garner.  As Obamacare demonstrated, federal control of health care doesn’t make healthcare better, just more expensive.

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One Response to "California Health Care – A New Adventure"

  1. Some think you, on occasion are addicted to rational observations, with limited focus, meant to ease the cogent emotionally strongminded intellectual powers, ideologically demagogic, to accommodate your reader. In short, are you not an apostle of the KISS principle? KISS-“Keep it simple stupid”.

    And while you introduced the “Impossible Dream”, the socialist’s ideology, a “right to government (you and me) funded medical coverage, it has never worked, and is now playing out on a grander scale in a case study in Venezuela.

    If only Zuckerberg, with his Harvard commencement address plea for a guaranteed wage, were to experiment with a Facebook pilot program, funded by his millions, he might re-learn individualism and exceptionalism. But I digress with this “just throw money at it” solution… long as it is not my money. “If you are not a liberal in your mid-twenties you have no heart. If you are not a Conservative at mid-fifty you have no brain”, to paraphrase Winston Churchill.

    If you had presented the following facts, you might have strengthened your point and lost your audience. So, suffer my input.
    California is bankrupt and has only to hide, use smoke and mirrors, before its terminal journey to Chapter 11 or 13 Court. The courts have just begun to strip away the pension protection from “taxation without representation” legislative nonsense.
    California is debt addicted ever since the Pete Wilson era.

    • The California “Bullet Train” has gone from 2 billion to 68 billion and if Elon Musk doesn’t come to the rescue, with his vacuum ride, we can expect an increased proportional repeat of the “Boston Big Dig” mission creep of lethal debt.

    • California debt, not the CA yearly Balanced Budget, stands at $340 billion which will increase with ever budget. At the end of the day, the California Tax payer will subsidize the shortfall until they are broke. At some point before that the taxpayer will see, crystal clear, the fraud. Welcome to the club of the Bernard Madoff investor.

    • The Los Angeles Department of Water and Power plan has $11 billion in unfunded liabilities. Unfunded means no way, as yet, to pay for it.

    • The University of California pension plan has an unfunded liability of $21 billion.

    • Currently the cities of Los Angeles and San Francisco allocate 23 percent of their budgets to their pension systems.

    • The “CalSTRS”, the California Calpers system, still has a $73.7 billion unfunded liability. A figure not even close to the truth.

    • Government Accounting shows CalSTRS, CalPensions, at a a newly calculated ‘Net Pension Liability’ of $166.9 billion.

    • California carries the largest unfunded liability in total dollars at $754 billion, followed by Illinois at $331.6 billion and New York with $307.9 billion.

    • “In total, government pension systems have $4.7 TRILLION in unfunded pension liabilities. As the stock market goes up, it is easier to finance this debt. When the market goes down, it is impossible to finance without either cutting benefits or taxpayers subsidies. California “proudly” carries one trillion of this debt.”

    California SB 400 has been a death spiral for pensions in California.

    And then, of course, “The present plan for California Health Care will exceed the entire State budget. The program would cost 400 billion dollars! (This is double the current California budget).”

    This year CA taxpayers had to fork over $2.67 billion to cover the pension shortfall. Next year, the tab will hit a new record: $2.75 billion.”

    As Unions go to court their cities are once again looking at bankruptcy due to pension costs and debt obligations.

    There is a difference between a “Balanced Yearly Budget” and spiraling debt obligations. The later has pretty much guaranteed California’s bankruptcy. It hardly needs a need a “New Health Care Adventure”.


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