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"This takes us in the wrong direction," said Assemblyman Greg Aghazarian, R-Stockton. "This creates a government-run system akin to the Department of Motor Vehicles. Do we want health care taken care of by another bloated bureaucracy?"
The bill does not account for the costs of the program since it would take several years before any plan was up and running. The plan would create a commissioner and a blue-ribbon commission to examine how the structure would work. An analysis by the Lewin Group, an independent health care consulting firm, said the plan could be paid for with all of the money now being spent on health care.
That would mean combining all state and federal funds, along with business contributions and participant payments and co-payments. The report suggests that funding could come through an 8 percent payroll tax and a 3 percent individual income tax.
SB840 allows California to use its purchasing power to negotiate bulk rates for prescription drugs and durable medical equipment, such as wheelchairs, thus realizing an additional $2 billion in savings, Kuehl's office said.
But eliminating health care insurance plans would eradicate the groups that have the most experience with getting people insured and to doctors, said Chris Ohman, president and CEO of the California Association of Health Plans.
Ohman said other places that are trying universal health care - such as Massachusetts and San Francisco - are using health care plans to help facilitate the implementation. He said the insurance companies are in the best position to manage costs.
"If there isn't the focus and drive for advancing preventative programs, the sky's the limit in terms of what the costs will be," he said. "That's what health plans do."
A Public Policy Institute poll from September 2004 showed that 71 percent of likely voters said they are at least somewhat concerned about being able to afford health care. A slim majority of Californians, 53 percent, said they would be willing to pay more - either through higher health insurance premiums or higher taxes - to increase the number of people who have health insurance.
The Plan
The health care measure would:
Eliminate private health insurance plans and create the California Health Insurance System.
Provide health care insurance for all Californians.
Guarantee patients the ability to choose their own doctors and hospitals.
Pool funds now being spent on health insurance and save money by reducing overhead and using leveraged buying power
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