The California Guaranteed Health Care for All Act, known as CalCare, was introduced in February 2021 by San Jose Assemblyman Ash Kalra. The legislation was sponsored by the California Nurses Association, long-time supporters of healthcare justice and Medicare for All.
CalCare would cover everyone in California and control healthcare costs.
Here are 5 facts you need to know about California’s new Medicare for All Bill: CalCare AB 1400
1. What would CalCare do?
CalCare would establish a state insurance plan that would cover all California residents regardless of employment, income, health status, marital status or documentation status.
2. What medical services would CalCare cover?
CalCare would include coverage for medically necessary services currently covered under the Affordable Care Act, PLUS oral health, audiology, vision services and long-term care.
3. How would CalCare be different from private health insurance?
CalCare would eliminate premiums, deductibles, co-pays and coinsurance. It would also eliminate hassles like pre-authorizations for treatment, provider networks and enrollment periods.
4. How would CalCare be financed?
CalCare would be financed by a public Trust Fund, which would be funded by monies from federal and state government agencies along with additional revenue sources, like a wealth tax, to be determined by the California State Legislature.
5. How can CalCare capture federal funding?
To capture healthcare dollars from the federal government, the Governor of California must request waivers from federal agencies such as Health & Human Services.
SIGN THE PETITION NOW!
Tell Governor Newsom to request the necessary waivers so federal funds can be used for a California single-payer plan!
CALL YOUR ASSEMBLYMEMBER!
Urge them to co-sponsor AB 1400, California Guaranteed Health Care for All Act. Thank them if they already have.
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Thank you!
It’s high time we get a single payer plan for Medical, dental and vision in California giving full access and stop the skyrocketing costs for health care. Medicare-for-all!! Everyone needs this!! Profiting from medical care is sickening.
So true!
Everybody need health care
Thanks for your comment, Magdalena! So true. . .
Will this cover the elderly? Especially prescriptions medical does not cover completely? My parents worked their entire lives in CA and still cannot afford their meds.
Hi, Travis, thanks for writing!
You bring up a very important question. How would CalCare work with our current Medicare system?
It’s never been done before, so lots of issues will need to be worked out between the state and the federal government. That’s why I can’t answer your question at this time.
But what I can say is that there is a vision of how this would work. And the vision is, the federal government would continue to pay what they’re currently paying for Medicare (and Medi-Cal) patients here in California like in every other state.
And California seniors – even those on Medicare and Medi-Cal – would enjoy access to the full complement of covered treatments (including prescription drugs, vision, hearing and dental…and even LONG-TERM CARE) same as any other Californian.
Seniors would not need to buy separate policies for dental care, or for prescription drugs, or to cover the 20% gap in Medicare. All of that would be included in their CalCare coverage.
I’m so sorry that your parents are struggling to pay for their meds. I hope we can get this healthcare mess fixed soon, so they can get some relief during their lifetime.
Thanks for writing and please write back if you have any other questions or concerns.
Will single payer insurance totally replace private insurance? Furthermore, will California have the option to choose if they want CalCare or blue shield? Thanks!
I do believe everyone should have quality insurance, but just wanted to know if CalCare was optional or will be mandated.
Thanks for writing, Rodney! CalCare will be like the Fire Dept. It will be there for everybody. The Fire Dept is not “mandated.”
I suppose we could just let our houses burn down, or try to put out the fires ourselves. We could have private, for-profit fire insurance companies on call to come and put out fires. But we don’t. (It used to be that way, BTW, and it didn’t work very well.)
Instead, we all pay for the Fire Dept. to take care of our fires.
But your question does bring up some interesting issues. For one thing, the federal government has regulatory authority (such as ERISA) over multi-state businesses. I’m not sure how CalCare would work with that. For example, what if a multi-state business that has California operations wants to keep paying a private health insurer to cover their California employees? That all has to be worked out.
But for California residents (again, unless federal law says otherwise), CalCare would be there for them so they could get really comprehensive coverage and wouldn’t have to pay exorbitant premiums and deductibles. (For example, I’m paying over $900 a month for health insurance plus I have a $7,000 annual deductible.)
Thanks for writing and please write back if you have any other questions.
Hi, Rodney, thanks for this additional question.
Yes, one critical advantage of single payer health insurance is that there is a single payer! In other words, the billing departments in doctors’ offices and hospitals will no longer have to deal with scores of health insurers and hundreds of different plan options.
Our multi-payer system is so incredibly complex, it costs doctors and hospitals millions of dollars just to get claims paid. Check out this article that compares the U.S. system with that of other developed countries.
Bottom line, the cost of having private health insurers in the game, treating our health care as a profit-making venture, is very high in lives and dollars.
So yes, ideally the single payer insurance system would totally replace private health insurance, and no, Californians would not have the choice of selecting Blue Shield.
Please write back if you have any other questions!
Hi, Laurence, thanks for writing!
First, an analysis conducted earlier this year by UC Berkeley Labor Center (START WITH SLIDE 9) showed that having a single payer system would save Californians $50-80 billion per year ($231 billion over 10 years), while covering everybody and expanding coverage to include vision, dental and even long-term care.
The cost, in other words, is much less than what we’re paying now – combining what employers, employees, retirees, cities, counties, and state agencies are currently paying.
Moreover, there would not be any private health insurers, nor premiums, coinsurance, deductibles or co-pays. Instead, there would be a single state agency that would process and pay claims. The agency would be funded by a combination of different taxes.
These tax ideas will no doubt be hotly debated by legislators, but the initial proposal suggests:
Businesses – the first $2 million in annual gross receipts are EXEMPT. After that, businesses would pay 2.3% of gross receipts.
Payroll – employers would pay 1.25% of their total payroll.
Payroll – employees. The first $49,900 is EXEMPT. After that employees would pay 1% of their payroll.
Personal Income Tax – first $149,509 is EXEMPT. After that, there would be a sliding scale “CalCare” tax based on income (the more you earn over $149,509, the more you pay).
Please check out the sources I linked to, and let me know if you have any other questions.
Full disclosure, I’m just reading the bill text, and I’m not a tax expert nor an economist. Thanks, again, for writing!