Amidst all the dire reports about the pending collapse of America’s health care system, there is some good news to report: universal health care is possible, it has passed the California Senate, and is awaiting action in the California Assembly.

And here’s the amazing part: a system of universal health care in California would be cheaper than what Californians pay right now for a patchwork system that leaves millions of people uninsured, leaves millions more under-insured, and sticks California workers with a rising tab in the form of medical “cost-sharing.”

The California Health Insurance Reliability Act of 2005, SB 840, is designed to bypass the enormous, complex, and wasteful insurance bureaucracies that currently stand between Californians and their doctors. By slashing the administrative costs of health insurance and utilizing California’s purchasing power to buy prescription drugs and medical equipment in bulk, SB 840 would save an estimated $25 billion in statewide healthcare spending in the first year alone, according to the bill’s author, state Senator Sheila Kuhl..

For members of IBEW Local 1245, the stakes are real, they are large, and they are growing. Health care coverage—and who pays for it—is the single largest bone of contention in virtually every set of negotiations the union has undertaken in recent years. Gains in wages and other benefits are increasingly undercut by pressure to accept a greater share of health care costs.

SB 840, which  won state Senate approval last May and is now under consideration by the state Assembly,  provides the security of  knowing that no Californian will ever lose their access to health care because they have lost their job, have a  pre-existing condition or simply cannot afford it. And it removes the hammer than now hangs over workers’ heads every time they go into negotiations with their employer.

Local 1245 Endorsement

Although the union has been monitoring health care legislation for years, the growing seriousness of the threat prompted the Local 1245 Executive Board in November to officially endorse SB 840.

“The health care problem has become too big for any union, or any employer, to solve by themselves,” said Local 1245 Business Manager Perry Zimmerman. “The system is broken and government is going to have to be part of the solution.”

Six million Californians have no health insurance at all, but the health insurance crisis is imposing a heavy burden even on those who do have insurance. Millions of California workers are under-insured. Half of all bankruptcies in the US are related to medical costs, and three-fourths of those bankrupt families had health insurance coverage at the time that illness or injury struck. As pressure grows for employees to accept weaker benefits, those bankruptcy statistics are bound to get worse.

Inefficiency and Waste

Unlike some previous “solutions” to the health care crisis, SB 840 does not attempt to just put a band-aid on some at-risk group. Instead, the bill seeks to correct the underlying problems of inefficiency and waste.

Ending waste? Now that’s a familiar battle-cry. But is it a realistic goal in the health care system?

The answer appears to be “Yes.” The California Health Insurance System is designed as a not-for-profit system, so “profits” remain within the health system to improve services, research and provider reimbursement. A recent study found that a system like the one proposed in SB 840 could fully insure all the state’s residents for $8 billion less than what is spent on health care today in the state.

One of the great deceptions in the current health care debate is that government programs are “wasteful bureaucracies” while the private sector is a model of efficiency. According to Senator Kuhl, 20-30% of the health care dollar is currently spent on administration—and that’s not even counting the profits that are extracted from the system (and your bank account).

Patient Choice

Another one of the great deceptions in the current health care debate is that government-sponsored programs deprive patients the right to choose their own doctor. The exact opposite is true: today’s system of private health insurance has tended to narrow the patient’s choice of doctor. SB 840, on the other hand, specifically permits Californians to choose any licensed primary care provider and dentist.

SB 840 will also give union members more choice in another way: when health care is off the table during negotiations, labor unions can choose which other priorities they want to turn their attention to, like wage increases and pension improvements.

The health care crisis is not going away just because we continue to ignore it. It will go away when we collectively take action. Urging your Assembly Member to support SB 840 is an important first step in finally creating a real solution.