California General Assembly Votes to Outlaw Private Health Insurance

by Mike Bevel, CollectionIndustry.com

All that stands in the way of a bill providing Californians with a state-run, single-payer health care system is one Governor Schwarzenegger.

The California Health Insurance Reliability Act (SB 840) would create a state-run, single-payer health care system and bar private medical insurance. State Sen. Sheila Kuehl, the bill?s author, has said that she expects the measure will be approved by the Senate and reach Gov. Schwarzenegger?s desk within days.

Arnie, however, has already spoken out against the proposed bill, saying that he doesn?t believe that government should be running the health care system. And he?s not alone. According to a study by the Pacific Research Institute and briefed at SHRMOnline, a government-run health care system in California would cut health care spending by just 4 percent but result in a drop in the number of physicians from 94,000 to 71,000. Access to medical technology would be diminished significantly, and there would be lengthier waiting times for medical treatment.

It?s clear, however, that something needs to be done. Nearly 1 in 5 Californians are currently uninsured; nationwide, that number is close to 42 million Americans. And according to Kaulkin Ginsberg’s forthcoming Healthcare ARM Report 2006, the healthcare industry sets aside roughly $129 billion annually to cover bad debt expenses, much of which was created by uninsured and underinsured patients. (Kaulkin Ginsberg is the parent company of CollectionIndustry.com.)