California’s high-profile effort to overhaul the state’s health care system died in the Assembly on Monday—we caught up with BIO’s State Government Affairs Team to get details.
AB1400, sponsored by CA Assemblyman Ash Kalra (D-San Jose) would have created CalCare, the first state-run single-payer health care system in the country, by establishing billions in new business and personal taxes (via constitutional amendment ACA 11).
The bill did not have the necessary votes to move by the Monday deadline. This is the second time in five years a single-payer bill died in the California State Assembly.
What they’re saying: “The shortage of votes needed to pass this bill out of the Assembly indicates the immense difficulty of implementing single-payer healthcare in California,” said Assembly Speaker Anthony Rendon (D- Lakewood).
“CalCare would impact BIO members and the patients who rely on their innovative medicines by establishing a single statewide formulary for nearly all residents of the state,” combining Medicare, Medicaid, Children’s Health Insurance Program (CHIP), the health benefits exchange, and employer-provided commercial coverage into one system, explains BIO’s Brian Warren in California. Negotiations between biopharmaceutical manufacturers and CalCare could “negatively impact the market for innovative medicines.”
It could also disadvantage patients—who may “need coverage of specific medicines and would no longer have more than one plan to choose from,” among other concerns.
The context: We could see single-payer legislation come up in New York this year, too—so keep an eye on this issue.
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