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Bill: California AB 1400
Author: Asm. Ash Kalra (D-San Jose)
Position: Opposed
Status 1/31/22: Failed to get out of State Senate. (BILL IS DEAD)
Summary: Replaces private health insurance with government run healthcare
AB 1400 would completely upend the existing health care delivery system and replace it with a single health plan governed by a board of nine unelected individuals. It would transform the practice of medicine in unknowable ways, without any input from those who practice medicine.
This bill contemplates consolidating Medi-Cal, private insurance and the Covered California exchange into a single health insurance product provided by the state – without the constitutional protections that are essential to ensuring that an adequate, guaranteed amount of resources will be allocated to a single-payer system to ensure its viability.
A legislative analysis estimates the cost of single-payer could be between $314 billion and $391 billion each year. Democrats have introduced an accompanying bill, ACA 11, to cover the costs. It proposes a tax hike on businesses and high earners.
ACA 11 includes a tax of 2.3% on businesses that have at least $2 million in annual revenue; a 1.25% tax on payroll for companies with at least 50 employees; a 1% tax for those employers who pay employees at least $49,900. ACA 11 also includes a series of tax hikes on wealthier people, starting with a 0.5% levy on the income of people who make at least $149,509 per year and ending at a 2.5% income tax for people who make more than $2.48 million per year.
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