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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.
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