California's proposed single-payer insurance system could save state residents $37 billion annually in healthcare spending, according to economists at the University of Massachusetts-Amherst.
The economists' study finds that universal coverage within the drafted statewide plan would increase overall costs by 10 percent, but suggests that two new taxes could shore up funding. A 2.3 percent gross receipts tax and a 2.3 percent sales tax, coupled with exemptions for small business owners, may be able to offset the costs of private insurance spending.
Under the plan, researchers estimate net healthcare spending for middle-class families would account for 2.6 percent to 9.1 percent of income. Businesses stand to benefit from the plan, especially smaller firms, which could experience up to 22 percent decline in healthcare costs.
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