Thoughts on a Tax-Funded Health Care System

Based on the Cal Care single payer proposal

The health care tax replaces all health insurance premiums, all deductibles and most other out of pocket health expenses, including most co-pays.

When you pay the health tax, the benefits you get are better than any existing health insurance plan and there are no exclusions for "preexisting conditions" or any other health problems. Dental care, mental health parity, long term care, alternative and complementary care, durable medical equipment and full prescription drug coverage are included without co-pays.

The health care tax is less than current health insurance premiums for most individuals and for all employers who currently provide health coverage.

95%-98% of the health care tax goes directly to health care services, whereas only 65%-75% of health insurance premiums go to health care services.

The health tax is equitably structured so what each person pays is affordable. Health insurance premiums bear no relationship to one's ability to pay.

The health tax is less than insurance premiums employers now pay so there is a pool of dollars that unions can negotiate back into wages and other benefits.

The health tax involves no new spending. Instead, it involves a shift of funds from the private sector (insurance premiums) to the public sector (health tax).

The health tax is socially responsible: Tax proceeds are used to assure that all Californians receive an essential social service. Health insurance premiums are socially irresponsible: Proceeds are used to assure profitability to one company and an essential service is provided only to those who can afford it.

Californians and their legislators are smart enough to understand that a not-for-profit health care system with a universal risk pool financed by taxes is a more cost effective, stable system than one made up of fragmented risk pools each burdened with an expensive bureaucracy and profit-sharing requirements.

Californians and their legislators are smart enough to understand that the health tax is a good deal, a better deal than insurance premiums. The health tax is like the Medicare tax only better: It provides lifelong health care security.