Much like California’s Democrat Governor Jerry Brown, who in the 70’s earned the nickname “Governor Moonbeam” for his outlandish leftist ideas, the cost California’s proposed socialized healthcare system is out of this world.
As the Sacramento Bee reported on Monday, the Democrat-dominated California state Senate calculates the cost of the “single-payer” system would be much more than double the amount of the entire state budget:
The price tag is in: It would cost $400 billion to remake California’s health insurance marketplace and create a publicly funded universal heath care system, according to a state financial analysis released Monday.
California would have to find an additional $200 billion per year, including in new tax revenues, to create a so-called “single-payer” system, the analysis by the Senate Appropriations Committee found. The estimate assumes the state would retain the existing $200 billion in local, state and federal funding it currently receives to offset the total $400 billion price tag.
The cost analysis is seen as the biggest hurdle to creating a universal system, proposed by Sens. Ricardo Lara, D-Bell Gardens, and Toni Atkins, D-San Diego.
It remains a long-shot bid. Steep projected costs have derailed efforts over the past two decades to establish such a health care system in California. The cost is higher than the $180 billion in proposed general fund and special fund spending for the budget year beginning July 1.
Keeping in mind that these type of projections are typically always lowballed in order to dupe taxpayers into accepting them, and considering that Democrats generally — the party of big government — are horrible at the math of spending other people’s money, the real cost could be many multiples of the above estimate.
For example, under Governor Moonbeam, with California already facing gargantuan deficits — Jerry Brown’s regime underestimated the cost of the state’s Medi-Cal program by a whopping $1.9 billion last year alone — blaming the mess on an “accounting error.”
Adding to that the state’s unfunded pension liabilities at around $1 trillion, and the fact that California is already a tax hell, one has to ask California Democrats:
“How will you pay for your Utopia?”