Universal health care solves state spending.
Leenson ’17 [Eric and Dan Geiger, October 17, CEO and Investment Advisor at Progressive Asset Management, Business and Social Responsibility Consultant at Forum EMPRESA; Senior Reporter at Crain’s New York Business; The San Diego Union Tribune; https://www.sandiegouniontribune.com/opinion/commentary/sd-utbg-healthcare-single-payer-business-20171017-story.html] calista
Small businesses are a huge sector of the California economy, representing more than 99 percent of all state businesses and providing jobs for 6.8 million, nearly half of all California’s private employees.
Yet small businesses are among the most negatively impacted by our nation’s health care system’s runaway costs and corporate insurance system. Private businesses spent $637 billion on private health insurance in 2015 and are projected to spend more than $1 trillion by 2025. Healthcare costs represent more than 17 percent of U.S. GDP, significantly higher than any country in the world.
In California, a solution is on the table now — the proposed Healthy California Act (Senate Bill 562) — which will be taken up again when the Legislature reconvenes in January. SB 562 provides superior benefits to businesses and households than those currently on offer, and will dramatically reduce expenses for small businesses. With Medicare-for-all, no company, individual or household would pay premiums, deductibles or co-pays — at all, and everyone is covered.
Taxpayers would save money by lowering overall health expenditures (taxpayers already finance 70 percent of health care expenditures). By reducing administrative waste, eliminating marketing expenses and insurance company profits, negotiating payments and through other measures, we would actually reduce health spending by 18 percent. A financial analysis by the Political Economy Research Institute at the University of Massachusetts-Amherst found that SB 562 could save small businesses up to 22 percent on health care as a percent of payroll.
As compelling as the financial figures are, other compelling benefits for small businesses deserve attention. Freeing businesses from the burden and expense of managing and paying for their employees’ health care will unleash them to invest in innovation, their employees and building their businesses. Small businesses could compete more effectively for employees drawn to larger employers because of health benefits. Would-be entrepreneurs would not have to hesitate about leaving their jobs to start a business for fear of losing health coverage.