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May 24 2017

California Considers Staggeringly Expensive Single Payer Healthcare

New York, whose Assembly recently passed a bill that would more than double taxes so as to impose single payer healthcare, may not be the first state to go bankrupt on behalf of socialized medicine. When it comes to moonbattery, California is not to be outdone:

It would cost $400 billion to remake California’s health insurance marketplace and create a publicly funded universal [health]care system, according to a state financial analysis released Monday.

California would have to find an additional $200 billion per year, including in new tax revenues, to create a so-called “single-payer” system, the analysis by the Senate Appropriations Committee found. The estimate assumes the state would retain the existing $200 billion in local, state and federal funding it currently receives to offset the total $400 billion price tag.

Confiscating the required revenue would drive even more businesses out of the state, resulting in higher unemployment, thereby emphasizing the need for the government to provide everyone with “free” healthcare.

The plan sure sounds utopian:

[T]here would be no out-of-pocket expenses — no deductibles or co-pays. Californians could visit any doctor without a referral and the plan would include dental, vision, mental health and nursing home coverage.

It would even cover illegal aliens, which would have the benefit of making Third-Worlders more likely to pore across the underdefended border into California rather than Arizona and Texas.

The problem with everything free for everybody is the cost. Even the astronomical $400 billion estimate may be optimistic:

[W]hen Californians approved a high-speed rail system in 2008, the estimated cost of the project was $40 billion. The current estimate for the same project is $64 billion and there is reason to think that figure is still well below the actual cost. In January the LA Times reported the first 118 miles of the plan was 50% over budget ($3.6 billion extra).

The same could happen with this new single-payer plan. Democrats could wipe out the old health care system only to discover the new one is going to cost $600 billion instead of $400 billion.

But once you are talking about numbers this massive, what is a few hundred $billion here or there? There are still plenty of lucrative businesses left in California to loot. For now, anyway.

Cash Spigot
They’re going to need a wider pipe.

On tips from Torcer, KirklesWorth, and Bodhisattva.

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