Single-Payer Bill Advances in Sacramento

You may have read the California State Senate Health Committee recently approved Senate Bill (S.B.) 562, a measure that would create a single-payer health care system in the Golden State. It will next be considered by the Senate Appropriations Committee – where it is sure to face tough questions about funding for the sweeping overhaul of the health insurance system in California.

Word & Brown, our carrier partners, and the California Association of Health Underwriters (CAHU) are concerned about the financing for the proposed measure and the impact on California’s health insurance broker community. As proposed, S.B. 562 would replace the current health insurance system for California residents with a government-run health care program.

The measure was promoted by the California Nurses Association. A wide variety of groups opposes the measure, including employers, manufacturers, and business groups. The California Chamber of Commerce says the measure is a significant job killer and would require massive tax increases. Kaiser Permanente noted at the Senate hearing that because the proposed legislation changes the way health plans work in California, it eliminates existing health insurance consumer-protections, which poses potential problems for insured residents.

As S.B. 562 moves through the legislature, we’ll communicate updates and let you know how you can take action through CAHU to voice your opinion on S.B. 562.

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