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 .
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 cost of the new system would cost $400 billion annually, according to the Senate Appropriations Committee. $200 billion of that amount would come from the funding for Medicare and Medi-Cal and other similar programs; the remaining amount would come from state funding, which at present stands at only $183 billion annually. The Senate Appropriations 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.