SB840: Bringing the Failures of Canada to the Golden State Part I
This is the first in a series of installments on SB840 written by The Gentle Cricket. Check back each Sunday for the newest installment.
SB840 should be a household word term for any Californian concerned with employment, economics, and taxation within the state of California. The bill, currently in the State Legislature, would create a socialized health care system within the state of California, similar to the failing Canadian health care system (more here). Currently, the Canadian health-care industry is reverting back to privatized health-insurance due to hospital closures, underfunding, and a decrease in the quality and timeliness of health care. Yet, instead of shunning this system, Democrats are attempting to bring it to California. In short, the State would criminalize private insurance companies, shifting all health care coverage to the state. While providing affordable health care to the greatest number of people is a noble cause, SB840 will do so with great cost to the citizens of California, with a disproportiante cost to the middle class.
The group Health Care For All provides a summary of the Bill. This summary claims that:
All federal, state and county monies currently spent on health care will be reallocated to the state Health Care Fund. This will supply about one-third of the needed funding. Federal waivers are required for allocation of federal dollars to the state Health Care Fund. The remaining funding will come from state health taxes that will replace health insurance premiums now paid to insurance companies and co-pays and deductibles now paid to providers. Premiums will be affordable for every Californian and every business because what families pay is in proportion to their income and what employers pay is in proportion to wages (emphasis added)
This means that middle and upper class workers will be required to pay a disproportionate amount compared to their coverage. A more complete summary claims that 12% of individual wages, plus “some other taxes” should be adequate. While 12% is already higher than what my wife and I currently pay for our insurance, I recognize the danger of “some other taxes” — ambiguity in taxation is a dangerous allowance for any program, let alone one with this massive a scope. Furthermore, the summary states “When cost control measures are insufficient [the] commissioner may ask the Legislature for an increase in health care taxes.” While they say this will be covered by current taxation, they are planting the seeds for increasing current taxes, and creating new ones.
The plan will not only affect employees taxation rates, it will also hurt businesses and weaken California’s economy. SB840 provides a disincentive for businesses to raise wages; any business willing to do so will have to pay proportionally higher taxes. Furthermore, it will provide an economic incentive for lowering the number of employees a company has. To add insult to injury, SB840 will create a disincentive for businesses to remain in California. Because the bill would eliminate choice amongst health care providers, those companies willing to provide coverage for their employees would be required by law to participate in the state’s monopolistic health-care program.
To those readers of this column, be warned. The noble intentions of SB840 will not come cheaply, nor will the lofty coverage goals be able to realistically be met. A crisis in health-care is being legislated right now. Check back next Sunday for the next installment.
March 26th, 2006 at 8:59 pm
Where is the provision criminalizing private health insurance?
March 26th, 2006 at 10:25 pm
Great question, Michael. In fact, nowhere in either of the summaries does it state that private insurance will be criminalized. However, the full text of the bill states “The bill would prohibit health care service plan contracts or health insurance policies from being issued for services covered by the California Health Insurance System.” Thus, any private insurance policy could not contain any overlap with what it covered by the state.
March 27th, 2006 at 6:34 am
Have any proponents explained why this provision is a good idea? What is wrong with private businesses offering the same services as the government?
March 27th, 2006 at 8:06 am
Gentle Cricket on socialized health care for Cali
The Gentle Cricket has posted the first in a series on California state bill SB840, which (by his reading) would bring all Cali health care under government control. I suggest that you read his post, since he is clearly invested
March 27th, 2006 at 8:45 am
Pacific Research posted a study on the ills of Single Payer in Canada.
It promises to do to health care what the government and unions have done to public education.
March 27th, 2006 at 12:53 pm
The Best Of Monday
California Conservative: SB840: Bringing the Failures of Canada to the Golden State Part I
Excerpt: The bill, currently in the State Legislature, would create a socialized health care system within the state of California, similar to the failing Can…
March 28th, 2006 at 7:04 am
[...] Follow-on to “Bringing the Failures of Canada to the Golden State†» GEN Sada: An Officer & a Gentleman » Wishing & Hoping » Some HardTruths About Immigration » Leveraging McCain » Competition as an Effective Education Reform » Bachmann Watch » Senate Panel Approves Immigration Bill » Hillary Solves Illegal Immigration Crisis » Coloring The Debate: “Brown Is Beautiful” » Now Hiring: Immigrants For Food Service » The Illegal Immigration Reform Scam » Kos & Effect: Liberal Blogging Working To Create A “Buzz Machine” » Illegal Aliens Demand US Citizens’ Rights » Education: On Vouchers » Russian Scientists Hide From U.N. Inspectors » SB840: Bringing the Failures of Canada to the Golden State Part I » Abdul Rahman To Be Released » Liberals Interpret the Scriptures; The Gospel According to Marx » Randy Quaid Sues “Brokeback Mountain” Producers, Says He Was Told Movie was About Heimlich Maneuver List all posts » [...]
April 2nd, 2006 at 3:44 pm
[...] Last week I introduced you to SB840, a bill in the California State Legislature that would bring socialized medicine to California. In addition to making health-care the sole responsibility of the state, the bill would criminalize private insurance companies, preventing them from operating within the state. The focus of last week’s introduction was to explore the inevitable economic repurcussions - both private and public - that would befall the state of California if this bill were to pass. In summary I proposed that the bill would lead to a dramatic increase in taxes at a disproportional rate to the middle and upper class (The Only Republican in San Francisco thought the bill sounded very Marxian, “From each, according to his ability, to each, according to his needsâ€Â), and would establish a very powerful disincentive for businesses within the state. This week, I would like to speculate on the potential non-economic consequences of the bill. [...]
April 4th, 2006 at 7:15 pm
The Elephant in the Room
There is an elephant in the room and no one wants to acknowledge it. The cry for universal health care is getting stronger. In California (no surprise there) SB840 is (apparently) picking up steam.
April 13th, 2006 at 10:07 am
[...] In my two previos posts about SB840, I discussed the financial repurcussions (part I) as well as the social consequences (part II). This week I am going to take a slight turn, and discuss two alternative plans that I consider more apt, and less troublesome than SB840. [...]
April 15th, 2006 at 10:50 am
This is very revealing. If the bill’s authors had confidence in their system, they would not restrict any private competition.
May 15th, 2006 at 12:20 pm
[...] Previously, I have posted about SB840, a bill in the State Legislature that would socialize medical care in California under a “single payer” (Government paid) program. The bill is slowly gaining support (the Huffington Post supports it), despite its many shortcomings. Today, I attended a propaganda session under the guise of an “informational meeting”, sponsored by Health Care For All, and held on the UCSF Medical school campus. The meeting featured various Democrats running for various positions in the state Senate and Assembly, all of whom support the bill that will raise taxes , damage the economy(Part I), and disrupt and damage health care delivery (Part II). Among the speakers were Mike Nevin, Leland Yee, Janet Reilly, and Mark Leno (who supports child pornography). Each was their to campaign, but each also provided some “insight” into the proposed bill. [...]