The Lewin Group was commissioned by the HCA-CA Education Fund to study the economics of SB 921. The study was conducted during the year 2004.

 

You can download the whole Lewin report or a summary. You may also wish to review several charts prepared by the Lewin Group.

You might also like to read Senator Sheila Kuehl's fact sheet about the Lewin study.

 

Here are some of the key findings.

 

 

Significant savings in total health spending in California would be achieved through a single insurance plan. In the first year of the plan, almost $8 billion would be saved.

 

The savings in administrative costs (about $20 billion in the first year) would help pay for both the uninsured and underinsured. The approximately 25% of healthcare costs that is spent on administration would be reduced to about 4% (similar to Medicare's administrative costs.) All components of administration would save significantly.

 

Businesses would realize an average savings of 16% compared to what they pay today. There is actually a wide range of savings among business, in part depending upon the number of employees.

 

Families would save on average $340 per year under this new plan. The following chart breaks the savings down for age groups.

 

Families whose annual income is less that $150,000 would save between $400 and $3,000 in the first year. Families with incomes higher than $ 150,000 would pay more.

 

The Lewin Group study projected costs of healthcare for ten years. Under the current system, costs would grow at a greater pace than they would under a single insurance fund. By the end of the ten year period, Californians would save a total of $344 billion with the new plan.