California Capitol Building

(Photo: Alex Proimos)

By Jeff Breiten, Redlands Post 106 Member

SB 770 was recently signed into law by Governor Newsom (September 2023) and now a proposal, which seeks to eliminate Medicare in California and establish a “state run health care system”, is moving its way through the State Legislature. SB 770 requires that the State of California prepare a proposal to seek a 1332 Waiver from the Health & Human Services Secretary, which would pave the way for a massive health care tax being imposed on California residents and employers.

SB 770 has set in motion that a 1332 Waiver proposal be completed by the end of 2024 that will result in the elimination of Medicare and all private health coverage in California, replace it with a costly, $400 billion-dollar untested health care system run by state government, and require the largest tax increase in state history. AB 1400, introduced by Assemblymember Ash Kalra in 2022, placed a $400 billion-dollar cost on a proposed single payer, state run health care system in California. AB 1400 also mentioned a 15% payroll tax and an income based “health care tax” to help fund a single payer health care system in California.

California’s disabled veterans, who are entitled to no cost health care from the Veterans Administration, could find themselves paying an imposed “health care tax” based on that disabled veteran’s income or spouse’s income. Disabled veterans who are self-employed or small business owners could find themselves subject to a payroll tax to fund a single payer health care system in California.

Veterans who are entitled to Medicare could find themselves paying an additional health care tax based on income, above the dollar amount that Medicare already sets each year. Military retirees who are entitled to Tricare for Life would experience a massive disruption to their Tricare medical benefits, currently provided by the federal government.

Our active-duty military families stationed at installations throughout California would have their Tricare medical benefits disrupted and current coverages changed. Military families may find themselves subject to a state health care tax for the federal Tricare benefits earned while serving our country. A self-employed military spouse may find themselves subject to a 15% payroll tax.

Everyone needs to voice their concerns to both state and federal legislators that any 1332 Waiver submitted to the Secretary of Health & Human Services MUST contain language to exempt and protect our disabled veterans, veterans entitled to Medicare, and our nation’s active-duty military families stationed at installations in California from any future imposed taxes to fund a state-run health care system.

A policy advocate for the California Chamber of Commerce, Preston Young recently wrote:

For those who think dismantling our health system is a good idea, here are a few specific concerns to consider:

SB 770 / single payer proponents seek to eliminate all private health coverage in California and force all Californians into a new untested health system – with no ability to opt out or choose private coverage instead. Study after study shows Californians like their health coverage and Medicare, and strongly support protecting their right to choose it, and strongly support protecting the Medicare coverage seniors have earned.

The waiver sought by SB 770 would redirect roughly $200 billion annually to the new single payer health system.  But that system is projected to cost more than $500 billion/year.  The missing $300+ billion a year would be raised by new, higher taxes on payroll, employers, and the goods and services Californians purchase.”

I agree that every resident in California should have access to affordable and quality health care.  I agree there are changes that can be made to improve the access and cost in California.  A state run, single payer health care system, will not only be disruptive and much too costly, but also take away your right to choose your medical provider and impact the quality of medical care available in California. California is already on the road of ensuring health care for all Californians and seeking a 1332 Waiver and establishing a state run health care system at the cost of over $400 billion dollars is not the answer.

caLegion Contributor
Author: caLegion Contributor

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