California Democrats on Tuesday took their first step toward abolishing the private health insurance market in the nation's most populous state and replacing it with a government-run plan that they promised would never deny anyone the care they need.
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But the proposal that cleared a legislative committee in the state Assembly is still a long way from becoming law. It faces strong opposition from powerful business interests who say it would cost too much. And even if it does become law, voters would have to approve a massive income tax increase to pay for it − a vote that might not happen until 2024.
Still, Democrats hailed Tuesday's vote for jumpstarting one of their long-stalled policy goals and signaling they won't back away from a fight even during an election year. In an hourslong hearing, some lawmakers and advocates assailed a health care industry they say has benefited corporate interests at the expense of consumers.
To pay for everything, Democrats have introduced a separate bill that would raise taxes on businesses and individuals by about $163 billion per year, according to an analysis by the California Taxpayers Association, which opposes the bill. Voters would have to approve the tax hikes. Assembly member Ash Kalra, a Democrat from San Jose and the author of the proposal, said Tuesday it could be 2024 before that proposal made it to the ballot.
The bill that advanced on Tuesday would create the universal health care system and set its rules. It cleared the Assembly Health Committee on an 11-3 vote. Republicans voted no, arguing the bill would cost too much and pay doctors and nurses less, potentially worsening a shortage of health care workers.
