California Bill Assists Their Impending Financial Doom
In a previous post, I wrote about the many disadvantages of a universal health care system. A universal health care system is one that is funded and provided by the government. Well, it looks like the Democrats in California may get there wish because they have recently passed a bill that will provide just that.
In an article published by the San Francisco Chronicle, the California bill, passed in the Assembly on a 43-30 vote, will eliminate the private health care system in California altogether if Governor Schwarzenegger signs it.
It goes without saying that eliminating privatized insurance in California will either force health insurance companies to shut their doors, or force them to terminate those services once offered to the public. That is a major tax base that will disappear not to mention the amount of newly unemployed individuals that will accrue. It does not take a rocket scientist or economics professor to see that there will be less tax money paid into the California governmental system while more money will be needed to fund the universal care system. Where are they going to get the funds to create this new system?
In the past few years California has been struggling to 'boost' it's economy. First, the state houses more illegal immigrants than any other in the U.S. at a frightening cost of $10.5 Billion annually. Second, they have passed clean air laws that have not faired well with companies looking to move to California. In fact, these laws have encouraged some manufacturers to "take a hike". Besides this and more, California already has a health care program for those not able to easily receive health care services. The program is called Medi-Cal and its costing California billions.
An article written in the Silicon Valley/San Jose Business Journal states that in 2005, Medi-Cal costs taxpayers $12 billion annually from its general fund. In 2003, five percent of free enrollees incurred 60% of all Medi-Cal's expenses. It is estimated that in 2015, the program's annual costs will rise to $29 billion annually. It is appalling to consider the effects that publicly funding all Californians will have on their economy.
At least California, being the "progressive" state that they are, may be the first to lead the way for either disaster or success. I predict they'll fail.
In an article published by the San Francisco Chronicle, the California bill, passed in the Assembly on a 43-30 vote, will eliminate the private health care system in California altogether if Governor Schwarzenegger signs it.
It goes without saying that eliminating privatized insurance in California will either force health insurance companies to shut their doors, or force them to terminate those services once offered to the public. That is a major tax base that will disappear not to mention the amount of newly unemployed individuals that will accrue. It does not take a rocket scientist or economics professor to see that there will be less tax money paid into the California governmental system while more money will be needed to fund the universal care system. Where are they going to get the funds to create this new system?
In the past few years California has been struggling to 'boost' it's economy. First, the state houses more illegal immigrants than any other in the U.S. at a frightening cost of $10.5 Billion annually. Second, they have passed clean air laws that have not faired well with companies looking to move to California. In fact, these laws have encouraged some manufacturers to "take a hike". Besides this and more, California already has a health care program for those not able to easily receive health care services. The program is called Medi-Cal and its costing California billions.
An article written in the Silicon Valley/San Jose Business Journal states that in 2005, Medi-Cal costs taxpayers $12 billion annually from its general fund. In 2003, five percent of free enrollees incurred 60% of all Medi-Cal's expenses. It is estimated that in 2015, the program's annual costs will rise to $29 billion annually. It is appalling to consider the effects that publicly funding all Californians will have on their economy.
At least California, being the "progressive" state that they are, may be the first to lead the way for either disaster or success. I predict they'll fail.
posted by The Twilight Troll at 11:02 AM
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