{"id":651,"date":"2026-06-25T05:09:01","date_gmt":"2026-06-25T05:09:01","guid":{"rendered":"https:\/\/nationallogisticspost.com\/?p=651"},"modified":"2026-06-25T05:09:01","modified_gmt":"2026-06-25T05:09:01","slug":"democrats-on-affordability-oh-never-mind","status":"publish","type":"post","link":"https:\/\/nationallogisticspost.com\/?p=651","title":{"rendered":"Democrats on Affordability: Oh, Never Mind"},"content":{"rendered":"
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C<\/span>alifornia lawmakers can\u2019t get their talking points straight when it comes to government-funded healthcare programs. They want to expand them \u2014 and there\u2019s always some ongoing effort to convert the entire state to a single-payer system \u2014 but whenever more people sign up for existing public programs, they get agitated. The latest example involves Assembly Bill 2729, which would penalize large companies if their employees participate in Medi-Cal, which is the state\u2019s version of the federal Medicaid system for low-income families, seniors, and the disabled.<\/p>\n

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As the Assembly Committee on Health\u2019s AB 2729 bill analysis explains, \u201cApproximately 14.5 million Californians rely on Medi-Cal as their primary source of care, making it a cornerstone of our state\u2019s healthcare system and a lifeline for working families, children, seniors and people with disabilities.\u201d But it complains that \u201can estimated 2.5 million Californians remain uninsured, and many more are underinsured or struggle to access the care they need.\u201d<\/p>\n

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So it\u2019s a great system that provides desperately needed healthcare for Californians, but wouldn\u2019t it be great if so many Californians didn\u2019t rely on it?<\/p>\n<\/blockquote>\n<\/div>\n

So, if I\u2019m following, the legislature is proud that the state offers such coverage \u2014 and wants to find ways to expand coverage to those 2.5-million uncovered Californians. But the bill\u2019s author and supporters also seem concerned that \u201c3.6 million California workers ages 19-64 are enrolled in Medi-Cal, excluding 900,000 self-employed workers.\u201d<\/p>\n

One of the bill\u2019s top supporters, SEIU California, argues \u201cthat Medi-Cal is intended as a public safety net program, yet many employers evade their responsibilities and shift the cost of job-based health coverage onto taxpayers and the public.\u201d So it\u2019s a great system that provides desperately needed healthcare for Californians, but wouldn\u2019t it be great if so many Californians didn\u2019t rely on it? Or something like that.<\/p>\n

Basically, this legislation is a money grab \u2014 an attempt to create the Employer Responsibility for Medi-Cal Trust Fund to prop up the system by imposing new taxes and financial penalties on employers. The California Chamber of Commerce understandably opposes the bill. It acknowledges that federal policy has reduced funding for state healthcare programs, but says these taxes will undermine the legislature\u2019s stated goal of lowering costs. Bingo.<\/p>\n

California Democrats have pushed an \u201caffordability agenda\u201d to counter the Trump administration\u2019s policies, many of which are indeed inflationary \u2014 yet they keep pushing policies that are also inflationary and harmful to working families. And don\u2019t get me started on California policies that drive up the cost of gasoline, utilities, and housing.<\/p>\n

\u201cWith affordability at the top of the Legislature\u2019s policy agenda, implementing new punishments on employers will disproportionately impact medium-sized businesses that already operate on narrow margins and have limited flexibility to absorb new costs,\u201d the chamber argued. \u201cFaced with additional financial burdens, employers may be forced into hiring freezes, reassess employee hours, or limit company growth \u2014 outcomes that could ultimately undermine the economic stability of the very workers the bill seeks to support.\u201d<\/p>\n

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Trying to force employers to offer healthcare plans would obviously drive up consumer prices. Employees for the large retailers this bill targets often are part-time and seasonal workers, so imposing costly healthcare requirements would be more likely to dry up job opportunities than to create expanded coverage. The legislature tried this approach in 2013 and 2019, but both times the legislature shelved the measures. AB 2729 is still active and under consideration by the Assembly Appropriations Committee, so we\u2019ll see what transpires this year.<\/p>\n

Another major healthcare measure has received even more media attention, as it focuses on federal vs. state political battles. A new federal law caps Medicaid provider taxes, which will reduce California\u2019s funding by $8 billion. That\u2019s a serious hit, so last week the full Senate passed Senate Bill 125, which would impose a tax on managed-care organizations to make up the shortfall. Essentially, the legislature is raising taxes on private providers to account for the mandated reduction in taxes for public ones.<\/p>\n

A CalMatters<\/em> report quotes industry experts who suggest the tax could raise premiums by $100 per person per year. And it pointed to the from the Legislative Analyst\u2019s Office: \u201cThis proposal comes with a key trade-off of creating higher costs on health plans, which likely will try to recover \u2026 some of this cost by raising premiums on their consumers. \u2026 If health plans shift all of the tax onto consumers, the $8.85 per member, per month would reflect around a 1.5 percent increase in average costs for consumers.\u201d<\/p>\n

A number of quoted legislators and industry groups are concerned about the bill\u2019s impact on affordability. And, of course, higher healthcare premiums could push more Californians onto the Medi-Cal system, which, as noted above, will provide even more impetus to pass penalties on businesses. Rinse and repeat. As the headline from a recent Los Angeles Times<\/em> column puts it, \u201cCalifornia is teetering on a healthcare cliff, but few are paying attention.\u201d These funding challenges are yet another reminder that there ain\u2019t no such thing as a free lunch.<\/p>\n

It might be better if, say, the legislature followed the California Chamber of Commerce\u2019s advice and worked collaboratively with employers to keep prices down rather than listening to public-sector unions and progressive lawmakers who rarely see a tax hike or public program they don\u2019t support. At the very least, California Democrats might want to stop pushing the idea of a single-payer system until they can figure out how to fund the public healthcare systems that already exist.<\/p>\n

READ MORE from Steven Greenhut:<\/strong><\/p>\n

Republicans Learn Wrong Lessons From LA<\/strong><\/p>\n

State Workers Just Want to Stay Home<\/strong><\/p>\n

Michael Bloomberg Is Back at His Nanny Game<\/strong><\/p>\n

Steven Greenhut is Western region director for the R Street Institute. Write to him at [email\u00a0protected].<\/em><\/strong><\/p>\n

Read more Is the Supreme Court the Final Word on the Constitution?<\/a><\/p>\n

Image licensed under Attribution-ShareAlike 4.0 International<\/strong>.<\/em><\/span><\/h1>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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