California Dems Revive Universal Health Care Bill, Say Targeted Tax Hikes Will Pay for It

Assemblyman Ash Kalra announced a bill on Thursday in California that he says would pay for universal health care through alterations to the state's tax system. It would pair with a February 2021 bill that would establish a system for universal health care in the state.

The first bill to create the first universal health care system in the U.S. didn't move very far in the legislative process after it was introduced, partially because there was no plan included to pay for it.

Kalra said the new bill would amend the state's Constitution and raise certain business and personal taxes. A personal increase would apply only to those with incomes over about $150,000, and the bill would require a two-thirds vote to pass through both houses of the state legislature and be approved by voters to become law.

The bill from last year would need to be passed by the state Assembly by the end of the month for it to possibly be passed at any point the rest of the year, while the second funding bill's deadline is months away.

Kalra said the system outlined in the two bills would cost employers about 1.25 percent of their payroll on health care, a decrease from the average number he cited of at least 9 percent under the current system.

Democratic leaders then scheduled a hearing for Kalra's original bill—the one that would create the universal health care system and set its rules—for next week. Assemblyman Jim Wood, the influential chair of the Assembly Health Committee, also announced he would vote for it.

"I think it's absolutely doable," Kalra told reporters. "It's about political will."

But businesses and the California Medical Association are already working to stop both bills. Project Health Care, a coalition that includes the California Medical Association and the California Hospital Association, warned the plan would "take away any choice for anyone who might want to select private coverage or opt out."

"Californians need and deserve a stable health care system they can rely on at all times, especially now," spokesman Ned Wigglesworth said.

"We know that is where the opposition is going to hinge their energy on: 'Oh look, a tax,'" he said. "What they don't want to tell you is how much they are charging you right now for health care."

Some health care advocates have long called for a universal health care system to replace the country's system that relies on private insurance companies.

But the proposal has never come close to passing in Congress. State lawmakers in Vermont have tried and failed to implement a universal health care system. Kalra said the New York state legislature is also considering a similar plan.

The Associated Press contributed to this report.