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The Honorable Shelia Kuehl California State Senate Capitol Building #5108 Sacramento, CA 95814 SUBJECT: SB 840 (KUEHL): SINGLE-PAYER HEALTHCARE COVERAGE - OPPOSE I OPPOSE your SB 840 (KUEHL) which creates a new government run, multi-billion dollar socialized health care system built from a yet to be specified tax increase, and on false premises and failed attempts in past legislative sessions. California voters have twice rejected a government-run health care system – most recently in Proposition 72 in November 2004 and in another initiative in 1994. Focus groups and numerous opinion polls on health care reform have reinforced that California residents do not want a single payer government run system. And more recently, the Senate voting to oppose the Governor’s and Assembly Speaker’s proposed healthcare system, AB X1 1. While the goal of the legislation to provide health coverage for all Californians is a laudable one, establishing a single payer statewide bureaucracy is the wrong approach. We fundamentally disagree with the two major premises of the bill: (1) government systems are more efficient than private business, and (2) a single payer system would be less costly than the current private system. It has been estimated by several sources that it would cost tens of billions of dollars to operate the health care system envisioned by this bill. There would also be billions of dollars in start-up and administration costs related to the new agency. These costs would be financed through new health care taxes on consumers, employees and businesses in California. Thus, this bill will result in a multi-billion-dollar-tax increase on Californians. SB 840 takes away choice. Under current law, those who wish to buy more, less or different coverage than others can often make those choices, just as those who have other priorities can exercise them in the market. Under SB 840 one size fits all, no matter what an individual’s preference might be. I share your concerns regarding access to and affordability of healthcare. Before adopting new costly mandates, the Legislature should consider the cost to many businesses and other stakeholders, along with the affordability. For these reasons, I OPPOSE your SB 840 (KUEHL).