February 8, 2010

California Health Insurance 200 Billion Dollar Mistake

February 5, 2008 - California Health Insurance News

Senate Passes Single Payer Bill

The California Senate has passed S.B. 810 which would create a single payer health care system in the state referred to as the “California Healthcare System (CHS).” The bill would eliminate private health insurance in California and require the state to negotiate reimbursement with health care providers. The bill is estimated to cost $200 billion and would be funded by pooling all state and federal money currently spent on health care in the state (pending federal approval) and a payroll tax. Due to the estimated $20 billion state budget deficit, this bill was not considered in 2009. The bill is now under consideration by the state Assembly. Governor Schwarzenegger vetoed similar legislation in 2006 and 2008 and has said he would do the same if the Assembly passes this bill.

Any mandatory health insurance requirements at the expense of new higher employer payroll taxes will likely drive more businesses out of state to more business friendly states and communities. For the time being, shop all California health insurance options. Free instant health insurance quotes.