Sacramento, CA — A new state analysis details the projected costs of implementing a bill being reviewed at the state capitol that would create a government run, single payer, healthcare system in California.
The legislative analysis puts the yearly total price tag at $400-billion. The report notes that $200-billion in existing local, state and federal funds are currently being used for healthcare, so that money could theoretically go towards a single payer system. An additional $200-billion would need to be raised from new taxes. A proposal being floated by the bill’s author, Democratic Senator Ricardo Lara, is a 15% payroll tax on earned income.
The bill, SB 562, would cover the healthcare of all residents of California. The report adds that employers and employees in the state spend a combined $100-billion to $150-billion on healthcare annually, so overall new spending would be between $50-billion to $100-billion.