Health Care Solutions for Businesses

SB 840 AND BENEFITS FOR BUSINESSES

CONSIDER THIS CALIFORNIA

UNIVERSAL INSURANCE LEGISLATION!

The California Universal Healthcare Act (Senate Bill 840) establishes a California Health Insurance Agency administered by a Health Insurance Commissioner and advisory boards. The public agency will replace most health insurance plans in California by providing comprehensive health insurance to all residents. 

Health care providers, including doctors, hospitals, HMOs, and clinics, will remain private, but will receive payment from this public “single payer” plan, instead of from Medicare, Medi-Cal, Healthy Families, county governments, or one of thousands of private insurance plans currently serving Californians.
         
SB 840 has three major advantages over the current situation: All residents will be covered, the coverage is better than almost any existing insurance, and it will cost less than what we are now paying. Savings will come mainly from a reduction of the administrative overhead, which is over 25% in California today.

HOW SB 840 WILL BE BENEFICIAL TO BUSINESSES

• Health premiums will cost less than businesses now pay for comprehensive employee health care. Proposed health care taxes are 8.17% on employers and 3.78% on employees, or a total of $5,975 for an employee earning $50,000 per year. This compares to $7,500 to $12,000 typically paid for good health insurance, depending on the size of the business. 
• Health premiums will be proportional to payroll, not to the number of employees. Businesses with many lower-wage employees will see affordable health care costs. Currently, these kinds of businesses find health care insurance costs to be prohibitive.
• Businesses will save considerable money by not administering health insurance.
• Temporary and part-time workers will be covered the same as others.  The complications of covering these workers will disappear. It will be easier to upgrade workers to full-time.
• The contentious health insurance issue will be removed from labor contract negotiations.
  

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