Two Hundred Billion

 

 

Some California Democrats in the state legislature are attempting to have the formerly Golden State adopt a single payer health care system.  The estimated cost for “free” health care in one state?  Two hundred billion dollars:

 

The price tag is in: It would cost $400 billion to remake California’s health insurance marketplace and create a publicly funded universal heath care system, according to a state financial analysis released Monday.

California would have to find an additional $200 billion per year, including in new tax revenues, to create a so-called “single-payer” system, the analysis by the Senate Appropriations Committee found. The estimate assumes the state would retain the existing $200 billion in local, state and federal funding it currently receives to offset the total $400 billion price tag.

The cost analysis is seen as the biggest hurdle to creating a universal system, proposed by Sens. Ricardo Lara, D-Bell Gardens, and Toni Atkins, D-San Diego.

Go here to read the rest.  The article goes on to note that the study estimates that California employers currently pay one hundred to one hundred and fifty billion to pay for the health care of employees.  A few thoughts:

1.  There is a word for a study that has a fifty billion swing in estimates on current health care costs for California employers:  worthless.
2.  I have never seen a study estimating a cost of a government program where the estimate doesn’t understate initial costs by fifty percent.
3.  Any health care provided by a government, due to political pressures, would be the same type of cadillac health care coverage offered under Obamacare, and thus comparisons to current health care costs are meaningless and far too low.
4.  The type of tax increases that would be necessary to implement this would greatly increase the exodus of any business or individual who has the wherewithal to get out of California.
5.  California is effectively now a one party state and thus lacks the usual Republican opposition that stops really bad leftist ideas from being implemented.  There is no down side politically for Democrats to implement “sound good” ideas that are completely unworkable in practice.
6.  Calexit is sounding better and better.

 

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Nate Winchester
Nate Winchester
Tuesday, May 23, AD 2017 5:27am

I am a big believer in federalism so I say let them.

Also so many people are convinced single-payer can work, maybe it’s time a crash and burn be demonstrated in their neighbor’s backyard to teach them it won’t. It will be even more fun since CA is so one-party, it’s going to be a hard sell for the true believers to blame interfering republicans for this failure.

Pinky
Pinky
Tuesday, May 23, AD 2017 9:12am

As PJ O’Rourke said, if you think health care is expensive now, wait until it’s free.

Steve Phoenix
Steve Phoenix
Tuesday, May 23, AD 2017 10:22pm

“Puerto Rico on the Pacific.”

Bienvenidos. I leave in 3 years 4 Mos ..but could be a lot sooner.

Michael Dowd
Michael Dowd
Wednesday, May 24, AD 2017 2:29am

I think the state should supply catastrophic health insurance, only. All other forms of health insurance would be declared illegal as they serve only to drive up the cost of health care. Health care has become a racket in many respects with multiple moral hazards for doctors and patients.

John Schuh
John Schuh
Wednesday, May 24, AD 2017 6:03am

I agree with Michael Dowd. As my father lay dying in 1965, I had a conversation with my family doctor about Medicare and Medicaid. He was adamantly opposed. He said it was socialized medicine and because it would put so much government money into the system that it would appeal to the greed of everyone involved. He had served in the army during World War II and had hated it. What it would do encourage many people to come to the doctor or go to the pharmacy unnecessarily, and to encourage them to think that every ill, even unhappiness, had a cure. The numbers being thrown out by Teddy Kennedy and others were nonsense. The demand for health care was unlimited. Therefore doctors would get rich, hospitals would get rich, suppliers would rich, and insurance companies would get rich. The relaionshio between doctor and patient would be altered. In the end, everyone involved would become a client of government and always demanding of new laws that would benefit them. The good thing was that public health would get much better. People would, however, be more careless of their health thinking that doctors could save them from their excesses. Bottom line, though, the cost to the government would be immense and if uncontaiend would become unaffordable.

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