Facts about Prop 72: The $7 Billion Healthcare Tax Hike
Prop 72 is a $7 billion tax increase on California businesses, public entities, non-profit groups and the workers they employ
- This law would force employers to pay an estimated $5.3 billion in taxes to fund a massive new state bureaucracy that would provide health benefits. Workers, whether or not they want or need this coverage, would pay an additional $1.7 billion out of their paychecks.
- Prop 72 will make California the only state in the nation to impose an expensive new healthcare tax on employers and employees at a time when many struggling businesses are just starting to rebound from the weakened economy.
- According to the Los Angeles County Economic Development Corporation, Prop 72 would cost businesses with 200 or more employees $6,803 per employee per year to cover the employee and his/her dependents. Smaller employers would pay $2,482 to cover each employee.
- Economists say that businesses will be forced to drastically raise prices for almost every product and service we use to pay the billions in new taxes.
Prop 72 will put government bureaucrats in charge of our healthcare system
- An un-elected state board will determine the taxes we'll pay and the health benefits that will be mandated under this scheme. The board will not be accountable to the public.
- The board will review private coverage and determine if it meets the state requirements.
- The board will determine what doctors fall under the state plan and what procedures are covered.
Prop 72 will not reform health care
- Real reform would contain medical costs -- not increase taxes to create a huge new government program.
- The law does not contain any controls for skyrocketing health care costs.
- Some companies that now offer private healthcare coverage will drop their private insurance and opt for the state-run program.
- Californians could lose their ability to choose the health care plan that meets their family's needs and end up paying more for less healthcare coverage under Prop 72.
- Patients may have no choice in selecting their doctors and face longer waiting times.
- Doctors may face more delays in payment for their care.
Prop 72 is a poorly written law
- Governor Davis signed this law two days before he was recalled.
- Politicians in Sacramento passed this measure at the last minute without the opportunity for meaningful public input, analysis and review.
- Non-profit groups, schools, local governments and others were never asked how SB 2 might impact their ability to serve the public.
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