The Senate Bill 562 or the “ Healthy California Act ” , California ’s single - payer health care proposal , has generated controversy in the Democratic party . If the bill passes , Californians could lose their present health care plans and pay potentially billions of dollars in new taxes to cover the change . Progressive Democrats , backed by the California Nurses Association , are in favor of the bill , which would replace the present health coverage through Medicare and Medi - Cal with a single government - managed plan for all Californians . California ’s government would decide the procedures and drugs that would be covered . Premiums , co - pays and deductibles would not be charged , but the implementation of the new system would cost $ 400 billion annually , according to the Senate Finance Committee . $ 200 billion of that cost would come from the funding for Medicare and Medi - Cal and other similar programs ; the remaining amount would come from state spending , which at present stands at only $ 183 billion annually . The Senate Finance Committee analysis has indicated that to cover the remaining amount , a 15 percent payroll tax hike would need to be enforced ; the California Nurses Association has claimed that a 2.3 percent levy on business income of over $ 2 million , as well as a 2.3 percent sales tax , would be the best course of action . Nurses recently rallied outside of the state capitol to urge Rendon to move the bill ahead. The legislation was tabled in 2017 because of the high cost of implementation . Colorado and Vermont recently rejected similar bills because of the increased amounts of funding needed . At the moment , 65 percent of residents favor the single - payer method , but this number drops by nearly one - third when it is revealed that it would be paid for through taxation .
The Senate Bill 562 or the “ Healthy California Act ” , California ’s single - payer health care proposal , has generated controversy in the Democratic party . If the bill passes , Californians could lose their present health care plans and pay potentially billions of dollars in new taxes to cover the change . Progressive Democrats , backed by the California Nurses Association , are in favor of the bill , which would replace the present health coverage through Medicare and Medi - Cal with a single government - managed plan for all Californians . California ’s government would decide the procedures and drugs that would be covered . Premiums , co - pays and deductibles would not be charged , but the implementation of the new system would cost $ 400 billion annually , according to the Senate Finance Committee . $ 200 billion of that cost would come from the funding for Medicare and Medi - Cal and other similar programs ; the remaining amount would come from state spending , which at present stands at only $ 183 billion annually . The Senate Finance Committee analysis has indicated that to cover the remaining amount , a 15 percent payroll tax hike would need to be enforced ; the California Nurses Association has claimed that a 2.3 percent levy on business income of over $ 2 million , as well as a 2.3 percent sales tax , would be the best course of action . The legislation was tabled in 2017 because of the high cost of implementation . Colorado and Vermont recently rejected similar bills because of the increased amounts of funding needed . At the moment , 65 percent of residents favor the single - payer method , but this number drops by nearly one - third when it is revealed that it would be paid for through taxation .