SB 770 was signed into law earlier this year. (Photo: Mathieu Thouvenin)

With the recent signing of Senate Bill 770 into law by Governor Gavin Newsom on October 7, California is making significant strides in healthcare reform. 

This legislation positions California as the first state in the nation to pass a bill with the potential to establish a unified healthcare financing system. The passage of SB 770 marks a step towards greater healthcare equity and accessibility not only to residents but also to Veterans.

Under the provisions of SB 770, the secretary of the California Health and Human Services Agency, CalHHS, is responsible for working in conjunction with stakeholders and federal authorities to develop a waiver framework for a medical package encompassing a wide range of medical, behavioral health, pharmaceutical, dental, and vision benefits. This framework is designed to ensure that essential healthcare services are not driven by profit motives but are accessible to all residents of California.

The benefits of SB 770 extend beyond the general population, addressing the healthcare needs of Veterans. In 2021, less than half of Veterans in the United States were enrolled in VA health care or Tricare, according to the U.S. Department of Health and Human Services. This disparity was often attributed to issues such as excessive red tape, challenges in appointment availability, and location concerns. These barriers have deterred many Veterans from using VA health care services.

For Veterans with private insurance but without VA health care, SB 770 offers the promise of a more accessible and equitable healthcare system. The bill eliminates insurance copayments, deductibles, and the hurdles associated with finding in-network providers. Veterans who have forgone medical care or worried about paying their medical bills due to a lack of access to VA health care may find relief through SB 770.

By November 1, 2025, the CalHHS secretary must submit a report detailing the finalized waiver framework to the state legislature and Governor Newsom.

President of Healthy California Now, Michael Lighty, emphasized the importance of SB 770 in ensuring equitable healthcare services for all. He highlighted the bill’s commitment to eliminating insurance copayments, deductibles, and the challenges of finding in-network providers. With SB 770, disparities in healthcare coverage will be eliminated, and financial incentives to deny necessary care will be removed.

SB 770 also brings about change by offering a single level of care for everyone, including Veterans, regardless of age, income status, employment status, immigration status, or other factors. Lighty pointed out that while California has made progress in expanding its healthcare coverage, some remaining issues can only be addressed through systemwide reform.

The Healthy California For All Commission issued a report earlier this year, indicating that transitioning to a unified healthcare financing system could save Californians $158 billion annually by 2031 while preventing 4,000 deaths each year. Small businesses in the state stand to benefit substantially from SB 770, as it levels the playing field by providing health insurance for all, reducing the financial burden on employers, and potentially increasing wages and pensions for workers.

The passage of SB 770 is a momentous achievement in California’s ongoing efforts to ensure healthcare for all. Lighty stressed the importance of continued work, emphasizing that while there is much to be done, this victory signifies California’s commitment to guarantee healthcare for everyone.

Opposition to SB 770 primarily came from health insurance companies, as voiced by the California Association of Health Plans and other industry organizations. They argued that Californians are generally satisfied with their healthcare and should have the freedom to choose private coverage for their families. Nonetheless, the bill’s supporters stress the importance of moving towards a unified financing system that prioritizes equitable, accessible, and high-quality care for California residents, as well as Veterans residing in California.

This legislation represents a major step in the ongoing transformation of California’s healthcare system, setting the state on a path to establish a unified health care financing system that fosters inclusivity, fairness, and the provision of high-quality care for every resident. The benefits of SB 770 extend not only to the general population but also to California Veterans who have faced challenges in accessible and affordable healthcare. California is expected to serve as a model for other states looking to enhance their healthcare systems.

Author: Rikki Almanza

Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted connection to the military, a spouse who is a Navy veteran, a father who served in the Air Force for 25 years, and a grandfather who proudly served, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.