The ‘payer’ in ‘single-payer’ health care is you – Latest News
Tom Steyer, the controversial billionaire who ran unsuccessfully for president, is making an attempt to appeal to California voters with a “single-payer” health care coverage.
He is not alone. Former Congresswoman Katie Porter and former Health and Human Services Secretary Xavier Becerra additionally proclaim their assist for single-payer.
Together, these three are California’s highest-polling Democrats working for governor. And with assist for “single-payer,” they’re united behind what can be one of the largest expansions of authorities energy ever proposed in this state.
Tom Steyer, the controversial billionaire who ran unsuccessfully for president, is making an attempt to appeal to California voters with a “single-payer” health care coverage. Getty Images for CBS Television Stations
He is not alone. Former Congresswoman Katie Porter and former Health and Human Services Secretary Xavier Becerra additionally proclaim their assist for single-payer. REUTERS
Together, Steyer, Porter and Xavier Becerra, are California’s highest-polling Democrats working for governor. Getty Images
“Single-payer” sounds technical. Clean. Almost innocent.What it means is that the federal government pays the payments. Which means, finally, the taxpayer.
When Steyer, Porter and Becerra say California wants single-payer health care, they imply a government-run financing system that will substitute non-public insurance coverage as the primary payer of health care prices.
In truth, because it’s been launched in the legislature, it might prohibit non-public insurance coverage firms from offering any companies provided by the newly mandated authorities health care program. So even when you like what you have now, it is going to be gone as you understand it beneath this new regime.
And the state of California would turn into the dominant financial gatekeeper for health care for almost 40 million people.
That is the ballgame. Under single-payer, current health care plans in California can be displaced by one giant authorities plan. Employer protection, union-negotiated plans, non-public particular person insurance policies, and far of the present insurance coverage market can be pushed apart.
“Single-payer” sounds technical. Clean. Almost innocent.What it means is that the federal government pays the payments. Which means, finally, the taxpayer. REUTERS
When Steyer, Porter and Becerra say California wants single-payer health care, they imply a government-run financing system that will substitute non-public insurance coverage as the primary payer of health care prices. REUTERS
Think much less “consumer choice” and more authorities control. Start with the price.The generally cited estimate, based mostly on prior single-payer analyses, is roughly $392 billion a 12 months. Not over a decade. Just for annually.
California’s complete 2025-26 state finances is about $321 billion, together with roughly $228 billion from the General Fund.
So the gross annual price tag for this new authorities health care system would exceed your complete present state finances and be about $164 billion more than the General Fund itself.
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That is not reform. That is creating a second state authorities, devoted virtually solely to health care.
The money has to return from someplace.
And no, you couldn’t remotely come close to paying for this spending behemoth by taxing billionaires.
That is the place the gross sales pitch collapses.
California’s complete 2025-26 state finances is about $321 billion, together with roughly $228 billion from the General Fund. REUTERS
Steyer can speak about taxing billionaires and companies. Of course he can. That is the applause line, particularly from a billionaire making an attempt to sell himself as a tribune of the people.
But the maths doesn’t work. Even confiscatory taxes on billionaires wouldn’t come close to masking a recurring annual price approaching $400 billion.
That is why earlier California single-payer financing proposals went a lot additional in proposing taxes. The prior CalCare tax plan included a gross receipts tax on companies; payroll taxes on employers and staff; and better personal income taxes.
In different phrases, companies pay. Workers pay. Employers pay. Households pay. Consumers pay not directly when prices get handed alongside.
This is the oldest trick in Sacramento. Sell a huge authorities enlargement as if another person can pay for it. Then this system launches, prices explode, and everybody finds out they’re “someone else.”
Then comes the forms.
A California single-payer system would entail a state-run health care financing equipment with a governing board, a trust fund, guidelines, waivers, mandates, rate-setting, reimbursement disputes, and political strain over what is lined, who will get paid, and how a lot.
In different phrases, companies pay. Workers pay. Employers pay. Households pay. Consumers pay not directly when prices get handed alongside. REUTERS
Supporters call that “streamlining.”
Californians who’ve handled the DMV, the unemployment division, homelessness packages, high-speed rail, Medi-Cal backlogs, or wildfire forms could call it one thing else.
And what occurs when prices exceed projections? Sacramento has solely a few decisions: raise taxes, cut supplier funds, prohibit entry, delay care, slender protection, or faux none of it is occurring till the following finances disaster.
Californians don’t need a coverage seminar to know the essential drawback. When the federal government turns into the payer, it turns into the middle of energy. It decides how a lot money is obtainable, how a lot suppliers receives a commission, what will get lined, what will get delayed, and what will get squeezed.
Our health care system has severe issues. Premiums, deductibles, drug prices and supplier networks are squeezing households and employers.
But a lot of that dysfunction is already the product of many years of authorities mandates, laws, subsidies, tax distortions, and political meddling.
Steyer seems to be at a system made worse by authorities intervention and concludes the reply is vastly more authorities intervention.
That is not reform. That is doubling down on the illness and calling it the treatment.
There is a purpose California’s Democratic supermajority retains failing to move single-payer. They love the slogan, rallies, and union applause.
Then the numbers show up. The tax hikes seem. The non-public insurance coverage disruption turns into clear. Federal waiver questions pile up. Suddenly, even Sacramento Democrats uncover warning.
Single-payer is standard as a slogan as a result of it obscures the trade-offs. Government-run health care is much less standard when voters perceive the price tag, taxes, forms and loss of control.
When they are saying “single-payer,” right here’s what they aren’t telling you:
The payer, finally, is you.
Jon Fleischman, a longtime strategist in California politics, writes at SoDoesItMatter.com.
