The estimated annual cost — triple the cost of California’s proposed $124 billion general fund budget for next year, according to The Mercury News — includes covered healthcare services and administrative expenses, at full enrollment, the study said.
The study notes a portion of the program cost could be offset by about $200 billion in federal, state and local funding. Billions of dollars in additional tax revenues would be needed to pay for the remaining costs associated with the legislation, Senate Bill 562.
“Assuming that this cost was raised through a new payroll tax (with no cap on wages subject to the tax), the additional payroll tax rate would be about 15 percent of earned income,” the study added, while also noting the overall cost of those new tax revenues would be largely offset by employers and employees spending less on healthcare coverage.
The California Senate Health Committee approved Senate Bill 562, known as The Healthy California Act, about one month ago.
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