Health Services. Taxes.

HEALTH SERVICES. TAXES. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. • Establishes health services system with defined medical, prescription drug, long-term, mental health, dental, emergency, other benefits; available to California residents, replacing existing health insurance, premiums, programs. • Services funded by tax upon employers, individuals, with stated exemptions, cigarette/tobacco products surtax, existing federal, state, county health care funds, if authorized; proceeds deposited into Health Security Fund. Health benefit providers, authorized costs, paid from fund. • Elected Health Commissioner administers fund/system, coordinates with federal law. • Provides cost controls; annual expenditure limits based on prior year expenditures, unless adjusted. • Creates advisory Policy Board, Consumer Council. Summary of Legislative Analyst\u27s Estimate of Net State and Local Government Fiscal Impact: • Total funds for a state-administered health system potentially exceeding $75 billion annually, including $40 billion to $50 billion from new state taxes. Costs could be less or greater than funds. • Potential state and local government savings in the hundreds of millions of dollars annually over time if these governments limit their contributions to the new health care system. • Potential state revenue losses initially as much as a few hundred million dollars annually. Long-term effect on state revenues is uncertain, but probably not major in context of the total state economy