Morning Briefing
Summaries of health policy coverage from major news organizations
Single-Payer Marches Forward In California, But Sky-High Price Tag Threatens To Trip It Up
A proposal to adopt a single-payer healthcare system for California took an initial step forward Thursday when the state Senate approved a bare-bones bill that lacks a method for paying the $400-billion cost of the plan. The proposal was made by legislators led by Sen. Ricardo Lara (D-Bell Gardens) at the same time President Trump and Republican members of Congress are working to repeal and replace the federal Affordable Care Act. (McGreevy, 6/1)
The move came even as proponents acknowledged they don't know how to pay its huge $400 billion price tag. The measure would have died if it failed to clear the Senate this week. Democrats said they wanted to keep it alive as the Assembly tries to work out a massive overhaul of the state health care system. "With President Trump's promise to abandon the Affordable Care Act as we know it, it leaves millions without access to care and California is once again tasked to lead," said Sen. Ricardo Lara, a Democrat from Bell Gardens who wrote the single-payer bill with Sen. Toni Atkins, a San Diego Democrat. (Cooper, 6/1)
Under the plan, government would negotiate prices with doctors, hospitals and other providers, acting as the 鈥渟ingle payer鈥 for everyone鈥檚 health care in the place of insurance companies. All Californians would receive coverage regardless of immigration status or ability to pay. (Luna, 6/1)
The California Nurses Association, the bill鈥檚 lead sponsor, has pushed the proposal hard, organizing demonstrations at the California Democratic Convention last month and promising to 鈥減rimary鈥 incumbent Democrats who don鈥檛 jump on board. On Wednesday, a study commissioned by the nurses concluded that Californians could save tens of billions of dollars annually under such a system through lowering of drug prices and elimination of administrative overhead. (Murphy, 6/2)
A new outside analysis claims a 鈥渟ingle payer鈥 health system for California would cost $330 billion a year, not $400 billion, the initial price tag announced last week in a legislative report. The financial analysis also proposed two new taxes to pay for the system: an excise tax and a sales tax. That鈥檚 in contrast to the 15 percent payroll tax proposed in last week鈥檚 report. (Feibel, 6/1)