Insuring the Uninsured

California and universal healthcare

Today, 45 million Americans live day-to-day without health coverage. As the federal government drags its feet when it comes to finding a workable solution, innovative legislation from states such as California are finding new ways to address the problem. Here’s your tool kit for understand today’s big issue: California’s plan for universal coverage.

Facts For The Good Fight

ONE — THE BILL

Think of it as one giant trust fund. SB 840 creates one plan and one public fund that pays all health care bills. But here’s the thing: don’t call it socialized medicine. Under the California plan, the government does not own all the health care facilities, nor does it train and employ the health care workforce. This is a private health care system that’s publicly administered and funded. [Health Care For All]

TWO — THE FUNDING

So where’s the cash coming from? Here’s the breakdown. A third of the money for the state Health Care Fund will come from all federal, state, and county cash currently spent on health care. The remaining two-thirds will come from state health taxes, which will replace insurance premiums now paid to insurance companies, and co-pays and deductibles that are now paid to providers. [Health Care For All]

THREE — THE NEED

As it stands now, about 5 million Californians have no insurance at any time during the year. 1.2 million of the uninsured are children. Under the proposed system, health care would be affordable for every Californian: what families pay is in proportion to their income, and what employers pay is in proportion to wages. And if that doesn’t spark your interest, try this: experts have forecasted that a single insurer model would save the state $44 billion in the first ten years. [Health Care For All]

FOUR — WHERE IT’S AT

SB 840 is expected to have an assemble vote in August. If it passes, it’ll head to Governor Schwarzenegger’s desk for a signature. In San Franicisco, city officials have already passed a similar plan to sharply reduce health care costs. [Fox] [Time]

FIVE — THE TREND

While California’s plan is revolutionary in scope, it’s not the first attempt by a state to cover the uninsured. Currently, Massachusetts, Vermont, and Maine all have laws in the books which make health care more affordable to its residents. [Dallas Morning News]

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People Are Talking

“We are implementing this. We’re not waiting around. It’s no longer good enough to explain away our problem and to point fingers. If it’s not going to happen through national leadership or statewide leadership, then it has to happen on a local level.”

- San Francisco Mayor Gavin Newsome, commenting on his city’s healthcare plan. [TIME]

Power Point

Nationally, more than 45 million Americans struggle with no health insurance. Here’s one reason why: premiums are growing five times faster than wages. So what’s the cure? The Center for American Progress has tackled the issue with its report Progressive Prescriptions for a Healthy America. Here are the highlights. [Center for American Progress]

Affordable Coverage For All

At least one of the following insurance options would be available to everyone: employer-sponsored insurance; Medicaid; or private health coverage offered through a new group insurance pool, like the system used by federal employees and members of Congress.

Valuable Coverage For All

It’s not enough to simply provide universal coverage. Rather, the coverage’s quality must remain high, while costs decrease. The Center’s plan insures the value of care by cultivating three main components: preventative care, cutting-edge research, and the newest health care technologies.

Financing Necessary Investment

As it stands now, employers and individuals are paying the costs for the shortcomings of America’s health care system. The Center’s plan looks to ease that burden by sharing the costs of coverage across our nation as a whole. Because the plan helps all, it makes the most sense that it be financed by all through a new, broad-based funding source: a small value-added tax exclusively dedicated to health system improvement.