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Single-Payer Health Care Reform Model Gets A Nod
An independent report predicts California would save $343.6 billion in health costs over the next 10 years using a single-payer system, mainly by cutting administration and using bulk purchasing power for drugs and medical equipment.
That system is the model State Sen. Sheila Kuehl (D-Santa Monica) used as part of her comprehensive health insurance bill aimed at reforming the state's health care landscape. Kuehl plans to reintroduce her bill during this legislative session.
Under a single-payer system, the government provides the financing for health care, but the actual delivery of that care is left in private hands. Kuehl's ambitious overhaul, the "California Health Insurance Reliability Act (CHIRA)," will create a public health insurance system to cover all Californians.
"The results of this study affirm that we can insure all California residents and stop unchecked, spiraling health cost inflation," Kuehl said. "The bill that I will introduce next month, based on these principles, to be called the California Health Insurance Reliability Act (CHIRA), will save money for individuals, businesses, families, and the state of California, who are all now burdened with rising insurance costs."
The study, released January 19, was authored by John Sheils and Randall A. Haught of the Lewin Group, a Virginia-based health policy consulting firm, and funded by Health Care for All–California, a nonprofit advocate for universal health coverage.
According to the study, employers who currently offer coverage would save. The benefits would cost employers around $2290 per employee, which would amount to an average 16% reduction in costs to employers who already provide insurance.
Over one million Californians — one out of every five — are uninsured, and 83% of the uninsured are members of working families. As the cost of health care continues to climb, businesses are shifting the burden to employees by requiring individual employees to pay for higher premiums, or by slashing coverage options. Health insurance premiums have skyrocketed 70% in the past three years, a weight more and more California businesses and working families are unable to bear.
According to the study, under Kuehl's proposal, families would pay an average of $2,448 annually in insurance costs, or roughly $340 less than what they currently pay. Families with annual incomes of less than $150,000 would see the most savings, while families with incomes of $200,000 to $250,000 would pay an average of $7,040 more annually.
The single-payer model analyzed by the Lewin Group guarantees every Californian the right to choose his or her own physician and provides comprehensive benefits, including medical, dental, vision, surgical, emergency, mental health, and prescription drug coverage. Durable medical equipment, such as hearing aids, is also covered.
During the last legislative year, the ACLU/SC worked closely with Senator Kuehl to push SB 921, "The Health Care for All Californians Act" through the Assembly Health Committee, making it the farthest-advancing universal health care bill in the nation.
FEBRUARY 2005
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Governor Proposes Budget with Deep Cuts, Harsh Real-Life Consequences
High School Students Fight Back Against Hate
LAPD Officer Shoots and Kills Youth in South Los Angeles
California Expands Domestic Partnership Rights
Civil Rights & International Human Rights Advocate to Lead ACLU/SC
State Legislative Preview: Beyond the Budget
ACLU Takes Aggressive Stance on Torture and Detentions
