California Universal Health Care Bill Fails To Pass

SACRAMENTO (CBSLA/AP) — California Democrats on Monday failed to gather enough support to advance a government-funded universal health care system, succumbing to intense pressure from business groups and the insurance industry in an election year.

The bill had to pass by midnight on Monday to have a chance at becoming law this year. But it never came up for a vote after its Democratic author, Assemblymember Ash Kalra, realized it would not pass.

"It became clear that we did not have the votes necessary for passage, and I decided the best course of action is to not put AB 1400 for a vote today," Kalra said.

While the measure would have created a universal health care system and set its rules, it did not say how much that system would cost or how the government would pay for it. Democrats had filed another bill that would impose hefty new taxes on businesses and individuals, hoping to separate the two issues.

"There were so many questions about financing," said USC Assistant Professor of Politics, Dr. Jennifer Cryer. "Where the money would come from. There were different models about financing... Different models about how the economic models would support that financing and that created a lot of confusion and discomfort."

Debate about the bill had been dominated by costs. A study of a 2017 proposal in California estimated it would cost $331 billion, which is about $356 billion today when adjusted for inflation.

But California is on pace to spend about $517 billion on health care in 2022, according to an analysis by a commission established by Gov. Gavin Newsom to study universal health care. The largest chunk of that is from employers and households, followed by the federal government.

California's total operating budget — which pays for public schools, courts, roads and bridges and other important services — is roughly $262 billion this year.

The California Nurses Association, which has pushed for the legislation for years, condemned the decision not to call the bill for a vote, saying it provided "cover for those who would have been forced to go on the record about where they stand on guaranteed health care for all people in California."

"Nurses are especially outraged that Kalra chose to just give up on patients across the state. Nurses never give up on our patients, and we will keep fighting with our allies in the grassroots movement," the association said in a news release.

Assembly Speaker Anthony Rendon, a Democrat from Lakewood, said he was "deeply disappointed" Kalra decided not to call the bill for a vote.

"With time, we will have better and more successful legislation to bring us closer to this goal," Rendon said. "I expect more and more of my colleagues to sign on, so we can make California a health care justice leader."

Cryer commented that the party, especially Kalra and Rendon seemed to be split on the issues and how to approach the passing of AB 1400.

"We often think about these things as party," she said. "They're all the same party, so they're on the same page — that's not the case."

Republicans were quick to pounce on Democrats' failure to advance the bill.

"Once the public was educated on exactly what this bill would do eviscerating their healthcare — eliminating Medicare for seniors," said GOP Minority Leader Marie Waldron. "Raising taxes by $160 and reducing access to care."

Kalra said after Monday's session that his bill was the victim of misinformation from those who stand to profit from the state's current healthcare system. If the bill were to have cleared the legislature, voters would have to approve the tax increase which some experts believed to be a monumental challenge.

"It's not just that you have a majority and that majority facilitates your ends and you get what you want," said Cryer. "You still need to make sure that majority is still on the same page — which is not the case here. You also need to make sure that the public is on the same page, which is not the case here."

There is a similar bill proposed by Newsom which does not require a tax increase.

Lawmakers have tried to pass universal healthcare in the past, such as in 1994 when voters rejected a plan to replace private health insurance. In 2017, a single-payer plan cleared the State Senate but never arrived to the Governor's office.

(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)