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Universal Healthcare

 

For Immediate Release: 1/28/10

Contact: Andrew McGuire

Executive Director

Health Care for All California

and the California OneCare Campaign

Phone: 415.215.8980

Leno's Single Payer Health Insurance Legislation

Wins Senate Vote 22 to 14

California OneCare Campaign

Reveals Massive Netroots, Grassroots Campaign

By a vote of 22 to 14, the California Senate today passed historic reform

legislation, SB 810, that calls for sweeping changes in the financing of health

care.

Under the bill, authored by Senator Mark Leno (SF), all residents would be

covered by a true universal health care system, which would pay for all

needed health services utilizing a "single payer" insurance system. Most

residents would be required to pay into the system and all would be covered,

with no additional co-pays, deductibles or exclusions for pre-existing

conditions.

Comprehensive reform. Under SB 810, private insurance companies would

be replaced by one non-profit health insurance fund. All services, including

prescription medications and equipment would be paid by the single fund -

hence the term "single payer". All California residents will be covered with

comprehensive, universal coverage for all necessary health care including

doctors, hospital, medications, mental health, medical equipment, dental, eye

care and more. Under the SB 810 legislation, hospitals and doctors would

continue to operate privately, while insurance would be financed publicly.

SB 810 is expected to be revenue neutral to the state and cost most

businesses and residents less for the most comprehensive health care reform

plan ever offered Americans.

A strategic Plan to WIN. Sponsors of the bill applauded the Senators who

supported this victory and outlined coalition plans for a massive multimedia

grassroots educational campaign to pass the bill through the Assembly later

this year.

One key component of the campaign will be an historic multimedia

advertising campaign that will feature a new 30-second TV spot every day

for a year starring celebrities, political leaders, health care activists and

victims. Some 60 spots have already been produced, featuring Lily Tomlin,

Paula Poundstone, Elliot Gould, Ed Begley, Valerie Harper, Connie Stevens,

Tracy Newman, Ken Howard, Ed Asner, Sheila Kuehl and more. Supporters

will be invited to submit their own versions.

Massive Grassroots Education. Kicking off on March 1, the 365-day ad

and grass roots organizing campaign will gain momentum during the most

tumultuous political period in decades, including a key state primary and the

November election for Governor, Senate and Assembly seats. The goal of

the campaign is to achieve passage and approval of the legislation by a twothirds

super majority of legislators in order to pass the financing legislation

to implement the legislation. Similar single payer bills were passed twice by

a 62% majority of the California legislature only to be vetoed by Governor

Schwarzenegger.

Californians will be invited to get active on line or join neighborhood events

to educate others about the benefits of this major reform of our health care

system. Leaders expect that California's success with a single payer system

will lead other states to adopt it as well.

California OneCare and the 365 Ad Campaign are a project of Health Care

for All-California and supported by single payer advocacy groups

nationwide.

* * *

SB 810 (LENO)

The California Universal Healthcare Act

Affordable Health Insurance for All Californians

February, 2009

FACT SHEET

Background: Health care costs are crushing California’s economy and the state budget,

forcing steep annual cuts in health care access and quality for Californians and their

employers. Health insurance premiums annually grow 4 times faster than wages, and

have risen 87% since 20001.

There are now 7 million uninsured Californians, but as insurance companies reduce

health coverage, polls show that most insured Americans are now worried about how to

pay for their health care if they get sick.

The U.S. spends more on health care—and gets less for it—than any other wealthy

country. The $2.5 trillion that we spend every year (17.6% of our GDP) 2, is twice as

costly as other wealthy nations, but it buys us a health care system ranked 37th by the

World Health Organization. Alarmingly, studies repeatedly show that the quality of care

in the U.S. is falling behind other wealthy nations.

California spent an estimated $212 billion in healthcare last year3. This is plenty of

money to provide every resident of the state with excellent healthcare, ensure fair and

reliable reimbursements to doctors, nurses and other providers, and guarantee a high

quality of care for all.

SB 810 (Leno), the California Universal Healthcare Act would provide fiscally

sound, affordable healthcare to all Californians, give every Californian the right to

choose his or her own physician and control health cost inflation.

Truly Universal: Eligibility is based on residency, instead of on employment or income.

Under the Act, all residents are covered. No California resident will ever again lose his or

her health insurance because of unaffordable insurance premiums, because he or she

changes or loses a job, goes to or graduates from college or has a pre-existing medical

condition.

Shared Responsibility: Under the Act everyone – individuals, employers and

government pays something in and everyone gets healthcare.

Affordable: The plan involves NO NEW SPENDING on healthcare. The system will be

paid for by federal, state and county monies already being spent on healthcare and by

1 Kaiser Family Foundation. Employer Health Benefits 2006 Annual Survey.

2 [Health Affairs 28, no. 2 (2009): w346-w357 (published online 24 February 2009;

10.1377/hlthaff.28.2.w346)] http://content.healthaffairs.org/cgi/content/abstract/hlthaff.28.2.w346

3 Lewin Group Costs and Economic Impacts Analysis. January 2005.

affordable insurance premiums that replace all premiums, deductibles, out-of-pocket

payments and co-pays now paid by employers and consumers.

Total Choice: Under SB 810, delivery of care remains as it is; a competitive mix of

public and private providers. All consumers have complete freedom to choose their

healthcare providers. No more restrictive HMO networks.

Fair Reimbursements: The Act requires actuarially sound reimbursements for

providers. Doctors, nurses, hospitals and other healthcare providers will receive fair and

reasonable reimbursements for all covered services they provide. No more

uncompensated care.

Efficient: The Act eliminates waste by consolidating the functions of many insurance

companies into one comprehensive insurance plan, saving the state and consumers

billions of dollars each year. Currently about half of every dollar spent on healthcare is

squandered on clinical and administrative waste, insurance company profits, and

overpriced pharmaceuticals. The Act is based on a model that has been estimated to save

California about $20 billion through reduced administrative costs in the first year alone.

Under the Act, California will use its purchasing power to buy prescription drugs and

durable medical equipment in bulk. It has been estimated that this model of systemwide

bulk purchasing could save California $5.2 billion in the first year.

Most importantly, the Act will make our healthcare system more reliable and secure by

stabilizing the growth in health spending; linking spending increases to state GDP and

population growth, employment rates and other relevant demographic indicators.

The Act will combine needed cost controls with medical standards that use the best

available medical science, and place an emphasis on preventative and primary care to

improve California’s overall health in a way that also saves billions of dollars.

The Act utilizes proven financial incentives that support the delivery of high quality care,

including bonuses for providers working in rural or under-served areas. The plan invests

in needed healthcare infrastructure such as electronic claims and reimbursement systems

and statewide medical databases that improve healthcare quality.

Benefits: Coverage includes all care prescribed by a patient’s healthcare provider that

meets accepted standards of care and practice.

Specifically, coverage includes hospital, medical, surgical, and mental health; dental and

vision care; prescription drugs and medical equipment such as hearing aids; emergency

care including ambulance; skilled nursing care after hospitalization; substance abuse

recovery programs; health education and translation services, including services for those

with hearing and vision impairments; transportation needed to access covered services,

diagnostic testing; and hospice care.

For more information contact Sara Rogers at (916) 651-4646 or

sara.rogers@sen.ca.gov, or Zak Meyer-Krings at (916) 651-4003 or zak.meyerkrings@

sen.ca.gov.