Authored by Senator Sheila Kuehl, SB-840 would implement a universal single-payer health insurance system for the entire state of California.

Secure

Any resident of California would be fully insured for any medical care they need. Retired residents living out of state are covered, as are Californians living out of state for less than 90 days. 

There's no worrying about losing your coverage. You keep your insurance even if you get divorced, graduate, or lose your job.

Comprehensive

The coverage is comprehensive, covering 100% of inpatient care, outpatient care, emergency care, primary care, physician and specialist care, prescriptions, referrals, lab tests, mental health, vision, dental, rehabilitation, preventative care, durable medical equipment, chiropractics, acupuncture, and much more.

Exclusions are limited to cosmetic surgery, private hospital rooms, and treatments with no medical value.

Saves Money

The single-payer plan saves billions. Even though there are new taxes, the vast majority of workers, families, businesses, and local governments will be paying substantially less under the new system.

These are not just optimistic guesses. They have been verified in study after study, including a January 2005 Report by the nonpartisan Lewin Group, which you can see for yourself. 

The report shows that the single-payer plan would save California families, workers, government, and businesses $8 billion in 2006 alone, and $343.6 billion between 2006 and 2015. State and local governments would save 900 million on retirement benefits, while companies that currently insure their workers would save $775 per worker, and the average family would save $340.

Efficient

We'll achieve these savings because the single-payer system eliminates wasteful bureaucracy in insurance corporations. 33% of the money currently spent on health care is wasted on administration and bureaucracy. Even more money is eaten up by price-gouging.

Under SB-840, the state insurance commission reduces bureaucracy costs to 3-4%. Because the insurance commission is nonprofit, more money will go to paying doctors and treating patients. Savings will also come from using the state’s bulk purchasing power to get lower prices on medical equipment and prescription drugs.

True Choice

Consumers can pick any doctor or hospital. The doctor decides what treatment is needed. The medical bill is sent to the insurance commission, which reimburses the health care provider for the bill.

Accountable

The system would be managed by an elected commissioner who will head the new health insurance commission. The commission, which has built-in checks and balances, would be subject to public oversight and it would be responsive to advisory committees.

Dedicated Funding