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• Reduces health care costs for business owners. Based on an analysis by the independent Lewin group, employers who currently provide insurance to 80% of their employees would on average save $2,186 per worker in 2006.
• Controls health care inflation. The premiums for employer-based health insurance rose by 11.2 percent in 2004, the fourth consecutive year of double-digit increases. Private insurance companies have failed to contain costs. With a Single Payer system Canada has controlled health inflation. Between 1985-2002 Canada's per capita health care costs increased only $1,680 while in the US it increased $3,508.
• Lowers retiree health care costs. Employer retirees' health care costs in California would be covered by the Single Payer system instead of your company.
• Creates a level playing field in the health care market. No more competitive advantage for businesses who fail to provide health insurance. All employers pay the same low rate set by the state. Businesses can plan more accurately for future growth. Businesses focus on what they do best, instead of wasting time scrutinizing health insurance plans.
• Removes headache of choosing health care plans. Reduces your paperwork. Eliminates the contentious relationship between employers and insurance companies in negotiating health care contracts. Eliminates friction between employers and employees over health insurance plans.
• Reduces employer fiscal concerns over hiring employees with pre-existing conditions. All California residents, regardless of pre-existing conditions, are provided health coverage.
• Reduces doctor rationing. Provides free choice of doctors for individuals instead of allowing private insurance companies to restrict access to only doctors in their network.
• Increases quality of care by emphasizing preventative medicine that employees do not have to pay out of pocket

How SB 840(Single Payer) Reduces Costs

A 2005 Lewin Group Report shows where California in 2006 saves money by adopting a Single Payer system (SB 840) with a 8.17% payroll tax on employers instead of paying private health insurance.

1. Reducing Insurer Administration by about 69%- saves $9.686 billion
2. Reducing Physician Administration by about 30%- saves $6.614 billion
3. Reducing Hospital Administration by about 22%- saves $3.56 billion
4. Bulk Purchasing of Prescription Drugs - saves $4.418 billion
5. Bulk Purchasing of Medical Equipment - saves $786 million
6. Increased Primary Care - saves $3.408 billion
7. Reduced Fraud - saves $783 million