Governor unveils universal health care plan Stops short of single payer health care
Governor Gavin Newsom unveiled his plan for universal health care in California on Tuesday in Lamont in Kern County that stops short of a single payer health care system, but would expand Medi-cal eligibility to all undocumented immigrants.
Meanwhile Democrats in the State Legislature continue to press ahead in their attempt to establish what would be the nation’s first single payer health care system for the state. Assembly Bill 1400 would create “Calcare,” a system governed by an independent board of directors. Democrats are proposing a number of income and business taxes to fund the plan, which will be the biggest hurdle to it ever becoming reality.
A constitutional amendment would be needed to pass the tax increases, which would require a super majority approval by the State Legislature — and by the state’s voters as a ballot initiative. Democrats hold a super majority in the State Legislature, but they will still have a difficult time to find enough support for the tax increases to fund a single payer health care plan.
Democrats behind the plan, though, say the taxes would essentially replace health care premiums now paid by health care recipients and employers — and would be cheaper.
“California is tackling the cost of health care head on. Under the California Blueprint, our state will be the first to achieve universal access to health care coverage,” said Newsom said. “Doubling down on our actions to reduce costs for middle-class families and expand access to important services, this proposal is a transformative step towards strengthening the health care system for all Californians. Everyone is healthier when everyone has access to quality, affordable care.”
Newsom proposed providing a full expansion of Medi-cal to all eligible Californians regardless of immigration status, including an estimated 764,000 undocumented immigrants. The thinking is since undocumented immigrants are in the state, they can’t be denied health care.
Medi-cal has covered all low-income children regardless of immigration status since 2016.
Under Newsom, California in 2019 became the first state to extend Medi-cal coverage to all eligible undocumented young adults up to the age of 26.
California also became the first state in the nation last year to expand Medi-cal eligibility to low-income adults 50 and older who were undocumented immigrants. On Tuesday Newsom proposed expanding on that, proposing to extend Medi-cal benefits to all undocumented immigrants, including those ages 2649.
Newsom stated his proposal lays out a “meaningful” plan that addresses the underlying factors that drive up the cost of health care. Newsom has proposed establishing the Office of Health Care Affordability, which he said will address underlying factors that drive up the costs of health care.
Under Newsom in the past the state has increased premium subsidies available to the middle class through its Covered California program, which administers the state’s Affordable Care Act program and has expanded coverage for preventative services such as screening for adverse childhood conditions and dementia.
“No other state in the country has done more in the space of health care access and affordability than the state of California,” said Health and Human Services Secretary Dr. Mark Ghaly. “I am proud of this administration’s work to pioneer a comprehensive health care system that will become a national model for expanding access, reducing costs, improving services, and closing equity gaps.”
Newsom’s proposed budget, which he unveiled on Monday and has dubbed the California Blueprint, also proposes $1.7 billion for health infrastructure and to support frontline health care workers. Newsom’s budget seeks to increase the number of health care workers in the state and also to provide help for health care and prospective health care workers through scholarships, loan repayments and grants.
Unlike the 2021-2022 budget, Newsom’s budget this year does call for increased funds for local health departments and tribal health programs.
Newsom also continued to stress a commitment to providing comprehensive reproduction health care, including a woman’s choice to a safe and legal abortion. Newsom has proposed increased flexibility fo Medi-cal providers to provide abortion services and providing scholarships and loan repayments to health care providers who commit to providing reproductive health care services.
Newsom’s proposed budget also includes $1.5 billion over two years for additional housing for those with behavioral health needs. Newsom has also proposed $1.4 billion over five years for a new Medi-cal benefit that would provide crisis response for mental health and substance abuse issues.
Last year Newsom also launched Medi-cal RX to negotiate drug prices and a program for subsidized child care for 200,000 children.