Single-payer destroys the economy and explodes healthcare costs.

Analysts estimate that a single-payer plan would cost California between $330 and $400 billion per year. If this sounds like a lot, it is. In covering a population of roughly 40 million, this would amount to about $10,000 per person per year. To give you a relative idea of the cost, this would approximately double the entire state budget.

The cost estimate is also understated, because such a plan would draw in new residents from other countries and other states who may have very expensive conditions. This could easily increase costs by 5 percent or more, for an additional $20 billion.

Any sensible reform of US healthcare must confront the problem that the consumers of healthcare do not have sufficient incentives to control costs. A California single-payer plan doubles down on this issue because it would eliminate virtually all incentives for consumers to control costs. No co-pays and no deductibles mean increased demand for virtually all healthcare, and extraordinary rationing of healthcare.

Ironically, one of the main sales pitches for single-payer healthcare—“You can’t be denied”—is false. Current and future procedures that are deemed by those running the state’s health board to be “too expensive” will indeed be denied or severely rationed. And you may need to wait in line a long time before receiving healthcare. The healthcare market does not magically avoid the economic realities of all other markets. If society provides a good at zero cost to the consumer, then the good will be allocated by rationing rather than price. No ifs, ands, or buts.