For those who talk about single-payer health care as a moral imperative, that’s all fine and dandy. But let’s get real — what we really want to know is, what would providing health care to every California resident do to my bottom line?

Now that an independent financial analysis has been completed on the impact single payer health care would have on individuals, businesses and the state, we can finally answer that question and the answer is — it’s a win/win/win.

Related: Single-payer health plan full of false promises

The analysis was conducted by Robert Pollin, distinguished professor of economics and co-director of the Political Economy Research Institute (PERI) at the University of Massachusetts-Amherst. Pollin, a trusted friend and previous adviser to Gov. Jerry Brown, was chosen specifically for his ability to conduct an independent, fair analysis of the bill’s financial impact.


In a nutshell, this is what he found: California currently spends $368 billion on health care. A single-payer health care system would cost California $404 billion. While it would seem that California would have to come up with another $36 billion to fund SB 562, that price tag does not take into account the substantial cost savings inherent in a single-payer system or the monies we currently receive from federal and public sources to fund our current system.

When cost savings are taken into account, $331 billion becomes the actual price tag for single-payer health care. Once we subtract the $225 billion we already receive in federal and public monies, that brings the need for additional funds to an affordable $106 billion needed to provide quality health care to every California resident that includes medical, dental, vision, mental health and prescription coverage.

The $106 billion we do need would be paid for in two ways — through a personal sales tax of 2.3 percent on nonessential goods (which means necessities like housing, utilities and food at home are exempt) and a 2.3 percent gross receipts tax on businesses.

Since insurance premiums, co-pays, deductibles and caps would go away, this means families and business would both save money.


In full transparency, not everyone would save. Those families in the top tier of income earnings would now pay about 0.06 percent for their health care where now, through tax credits, they pay nothing.

While families fare pretty well, businesses would win big. Small businesses with less than 9 employees would be exempt from taxation until they reach $2 million in gross receipts. Even with businesses above $2 million having to pay both a gross receipts and sales tax, the savings would be astonishing.

Small businesses currently offering health care to their employees would see a net decline in health care costs of 22 percent, midsized companies 13.5 percent and large companies of up to 500 employees would save 5 percent on health care costs as a share of payroll.

There are other ways businesses would see a positive impact. Better, cheaper health care means employees would take less sick days, feel better and be more productive at work. Small businesses that don’t offer health care would no longer lose employees to bigger companies solely because they offer benefits. Businesses that do offer health care could eliminate most of the administrative costs of doing so. Finally, it means business owners would get to focus on their product or service rather than the business of health care.


I encourage you to read the full analysis, which can be found on the healthycaliforniaact.org website, because when it comes to single-payer health care, it pays to be informed. The pharmaceutical industry, which has the distinction of being the largest lobbying group in the United States, will likely attempt a vigorous disinformation campaign that continues to talk about that $404 billion price tag as if that’s the true cost of care.

As SB 562 goes to the Assembly, business owners should call their Assembly members to let them know of their support for this legislation. They can’t afford not to.

Trager, a La Jolla resident, has worked in the health care field for 15 years and is currently an independent insurance broker. She is a member of the steering committee for Healthy California, part of the campaign advocating for passage of SB 562.