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A Background History of S B 840

Spring 1998

Health Care for All-California (HCA) helps draft Senate Bill 2123, which calls for a universal single payer health care system. The authors are State Senators Barbara Lee (Oakland) and Diane Watson (Los Angeles). HCA leads a campaign for organizational endorsements. SB 2123, as revised and passed by the Senate Health and Human Services Committee, calls for a comparison of different models of financing universal health care, including single payer.

Summer 1998

HCA helps draft Senate Concurrent Resolution 100, which calls for a study to compare different models of financing universal health coverage. Each model must provide the same high quality benefits, which are defined in the bill. The content of SCR 100 is authorized by Senate President, John Burton, and supported by leaders of the Assembly and the Senate.

Spring 1999

HCA helps draft SB 480, which requires: 1) a process for stakeholders to address the issues facing the state in providing universal health coverage; 2) a report from the California Health and Human Services Agency (CHHS) to the legislature on the results of the process and the universal health coverage study; and 3) enactment of universal health coverage for all California residents by a "date certain," July 1, 2003. The author is State Senator Hilda Solis (Los Angeles).

Summer 1999

HCA initiates a statewide organizational endorsement campaign to pass SB 480. Hundreds of organizational endorsements are sent to the legislature. With the date certain provision removed, the bill passes the legislature. The endorsement campaign continues. Newspaper editorials and op-eds are published calling on Governor Davis to sign SB 480, which he does.

Winter 2000

By the authority of leaders of the Assembly and the Senate, a panel of national health care experts, the Universal Health Care Technical Advisory Committee (UHCTAC), meets to review the status of the study, evaluate different proposals for conducting the study, and issue a report of recommendations. The UHCTAC report draws on HCA's own recommendations, which include: the government should be the client for the study; advocates of a particular model of universal health coverage should devise that model; the methods and assumptions used for the study should be transparent; there should be competitive bidding by modelers; and the quality criteria defined in SCR 100 should applied to each model.

Spring 2000

HCA initiates a statewide organizational endorsement campaign to augment the budget so that CHHS can implement SB 480. The legislature approves $600,000. Davis authorizes $200,000.

Summer 2000

HCA initiates a statewide organizational endorsement campaign to have the governor apply for a federal grant from the Health Resources and Services Administration (HRSA) to conduct a comparative analysis of different models of universal health coverage. The funds would enable implementation of SB 480. Although HRSA approves applications from 20 states, its budget can only fund 11 projects. California is among the nine states not awarded a grant.

Fall 2000

HCA initiates a statewide organizational endorsement campaign to augment the federal budget so that HRSA can award grants to California and the other eight states. With support for the campaign from U.S. Representative Nancy Pelosi (San Francisco), Congress increases HRSA's budget by $15 million. California's “Health Care Options Project” (HCOP) receives $1.2 million.

Spring 2001

HCA initiates a statewide organizational endorsement campaign to guarantee full participation by representatives of the Legislature and health care stakeholders in the SB480/HCOP process, and to have CHHS utilize the recommendations of the UHCTAC report. The Senate and Assembly budget subcommittees for health hold hearings about implementation of SB480/HCOP and support HCA's goals.

Summer 2001

CHHS creates the Advisory Group for the SB480/HCOP process. There are representatives of state and local governments and a broad range of health care stakeholders. CHHS approves nine proposals for the study. There are three universal single payer models and six proposals that increase coverage through public program expansions, employer and/or individual tax credits, subsidies and/or mandates, or combination approaches. HCA initiates a campaign to have CHHS contract for an analysis of how well each proposal satisfies health care quality measurements, in addition to how much each proposal expands health coverage and how much the expansion costs.

Fall 2001

CHHS contracts with the Lewin Group to analyze and compare the cost and coverage impacts of the nine proposals, using a micro-simulation model. CHHS also contracts with AZA Consulting to analyze the quality and access impacts of the proposals.

Winter 2002

CHHS and the California State Library/California Research Bureau sponsor five public symposia, which are held in Fresno, Oakland, Manhattan Beach and Sacramento (twice). The authors describe their proposals, and the Lewin Group and AZA Consulting report their findings. The authors use public input to revise their proposals.

Spring 2002

The authors of proposals, the Lewin Group and AZA Consulting submit their final documents to CHHS, which are posted on the HCOP website, www.healthcareoptions.ca.gov (under “Document Library”). In the conclusion of his presentation at the last symposium at the capitol, John Shiels of the Lewin Group says, “One of the major claims of the single payer advocates for a long time has been that we could cover more people, for more services, for less money. Our study is showing that, for these very carefully designed plans, that's true. To the best of our ability to estimate it, that's true.”

Fall 2002

HCA convenes monthly meetings in Sacramento with a wide range of organizations to lay the basis for a grassroots movement to support a single payer bill in the 2003 legislative session. Several Assembly Members and State Senators compete for the organizations’ endorsement to be the author of the bill. Sen. Sheila Kuehl (Santa Monica) is chosen. The legislation is developed on the basis of recommendations from the public, health care stakeholders and features from the three HCOP single payer proposals.

Winter 2003

SB 921, The Health Care for All Californians Act, is introduced and amended. The Health Care for All Californians Campaign is established, composed of a growing number of organizations that endorse the bill. A steering committee is formed from members of diverse organizations that support the bill. Regional meetings are held to involve local organizations in the campaign.

Spring 2003

A huge lobbying campaign advances SB 921 to the Senate floor. The Senate passes the bill, but only with “intent” language. It is sent to the Assembly.

Spring 2004 In the Assembly, SB 921 is heard by the Health Committee. Predictions that the bill will be voted down by a combination of moderate Democrats and Republicans are proved wrong. A massive lobbying campaign results in the bill passing, 12-5, on a party-line vote. SB 921 has 26 co-authors (6 Senators and 20 Assembly Members) and more than 500 statewide or local organizations are endorsers. HCA raises $90,000 to hire The Lewin Group to analyze the financial impact of SB 921 (April 2004 version).
Winter 2005 Sen. Kuehl releases The Lewin Group report. The findings show the model on which SB 921 was based and her new legislation will be based can cover every Californian with a comprehensive health plan that reduces costs and controls health cost inflation. If the model were implemented in 2006, the cumulative savings between what would be spent without the plan and what would be spent under it would be $8 billion in the first year and $343.6 billion from 2006-2015.
Spring 2005 Sen. Kuehl introduces new legislation, SB 840, the California Health Insurance Reliability Act, which substantially amends SB 921. (CHIRA does not contain finance language. A second bill, which will be introduced in 2006, will explain the financing of SB 840.) Advocates garner hundreds of endorsements from organizations, co-authorships from legislators, thousands of letters of support from individuals, and place op-eds in many newspapers. The Senate passes SB 840.
Summer 2005 The Assembly Health Committee passes SB 840. It has 33 co-authors (13 Senators and 20 Assembly Members.)


Prepared by Dan Hodges, Chair, Health Care for All-California (www.healthcareforall.org)