Failure and Success in California Legislators’ Healthcare for All

California is known for pushing the boundaries of everything from technology to environmental protection. As Clearsurance shares in its report, California Universal Healthcare, healthcare for all is the latest example of a push beyond the standard private health insurance framework. 

The bill that would have overhauled health insurance in California to state-sponsored health coverage was taken off the voting block before it could be voted down, but you can expect to see similar, better-developed legislation again.

Universal Healthcare Explained

Universal healthcare is a government-sponsored healthcare system. Instead of having access to employer-sponsored, state-sponsored, or Health Insurance Marketplace plans, all residents would have the same state-sponsored health insurance coverage. 

Both high-income and low-income individuals will have access to the same health coverage. Private insurance is not an option in a universal healthcare system.

Payment for Universal Healthcare

Government programs are typically supported by taxpayer dollars, and that’s how universal healthcare is funded. Unfortunately, the California Universal Healthcare bill failed to delineate how much universal healthcare would cost and where the state would get the money for the program. That’s the primary reason it wasn’t put to the vote.

With major government program expansion, wealthy individuals and big businesses tend to bear the brunt of the increased taxes. Some individuals who receive healthcare may not experience increased taxes, while others will be liable for significantly higher taxes. 

Opposition to Universal Healthcare

The most significant opposition to universal healthcare is private insurance companies. That makes sense because universal healthcare would put private insurers out of business. Those insurers are willing to fight using all their resources to keep access to their health plans available. 

But private insurers aren’t the only ones who oppose the proposed universal healthcare bill. Many lawmakers, lobbying groups, and individuals also stand against universal healthcare for reasons including the ones below:

• Government control could limit access to costly procedures. 
• Government-run programs could frequently result in longer wait times.
• Universal healthcare will increase taxes.

Competition is usually considered a good thing. As with auto insurance in California, the competition keeps health insurance costs in the state in check. If insurers charge high rates, customers will seek coverage elsewhere. With universal healthcare, there is no competition to control the market.

Despite the opposition, many champion healthcare for all. It’s a way to provide equity to every inhabitant of the state. With universal healthcare, every citizen has equal access to medical care. 

Benefits of Universal Healthcare

Universal healthcare would revolutionize the industry, and the following are some of the benefits it would bring:

• Equal access to healthcare for all
• Potentially healthier individuals
• Potentially lower healthcare costs

For years, people have complained about the broken healthcare system. The Affordable Care Act (ACA) was passed to help fix the system, but there seem to be as many complaints post-ACA as before it passed. Universal healthcare wouldn’t seek to restructure the current system; it would throw it out and replace it.

Healthcare for All Failure and Success

Even though the Universal Healthcare bill failed to pass, California legislatures successfully passed a healthcare for all bill, expanding Medi-Cal.

Medi-Cal already provided healthcare coverage for undocumented immigrants over 50 and younger than 26, but undocumented immigrants in the middle-age range were not included in Medi-Cal coverage eligibility.

With the passing of the Medi-Cal expansion bill, nearly 700,000 undocumented immigrants will have access to the same state healthcare program as low-income documented California residents between the ages of 26 and 49. 

So, while private healthcare continues to exist, California’s state healthcare system will significantly expand services beginning in 2024.

Real Clearsurance.com’s full report: California Universal Healthcare.